On May 22, 2014, Hillcrest Co. purchased $6,180 of supplies on account. In Hillcrest Co.'s chart of

Question:

On May 22, 2014, Hillcrest Co. purchased $6,180 of supplies on account. In Hillcrest Co.'s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21.

a. Journalize the May 22, 2014, transaction on page 19 of Hillcrest Co.'s two-column journal. Include an explanation of the entry.

b. Prepare a four-column account for Supplies. Enter a debit balance of $1,500 as of May 1, 2014. Place a check mark (✓) in the Posting Reference column.

c. Prepare a four-column account for Accounts Payable. Enter a credit balance of $16,750 as of May 1, 2014. Place a check mark (✓) in the Posting Reference column.

d. Post the May 22, 2014, transaction to the accounts.

e. Do the rules of debit and credit apply to all companies?

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...