On August 7, 2010, Mainsail Co. purchased $2,190 of supplies on account. In Mainsail Co.s chart of

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On August 7, 2010, Mainsail Co. purchased $2,190 of supplies on account. In Mainsail Co.’s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21.
a. Journalize the August 7, 2010, transaction on page 19 of Mainsail Co.’s two-column journal. Include an explanation of the entry.
b. Prepare a four-column account for Supplies. Enter a debit balance of $1,050 as of August 1, 2010. Place a check mark (✔) in the Posting Reference column.
c. Prepare a four-column account for Accounts Payable. Enter a credit balance of $15,600 as of August 1, 2010. Place a check mark (✔) in the Posting Reference column.
d. Post the August 7, 2010, transaction to the accounts.


Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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