The chart of accounts of Renteria Company includes the following selected accounts.

112 Accounts Receivable                         401 Sales
120 Merchandise Inventory                     412 Sales Returns and Allowances
126 Supplies                                             505 Cost of Goods Sold
157 Equipment                                         610 Advertising Expense
201 Accounts Payable

In July the following selected transactions were completed. All purchases and sales were on account. The cost of all merchandise sold was 70% of the sales price.

July 1 Purchased merchandise from Carlin Company $7,000.
2 Received freight bill from Johnson Shipping on Carlin purchase $400.
3 Made sales to Nance Company $1,300, and to Franklin Bros. $1,900.
5 Purchased merchandise from Flynn Company $3,200.
8 Received credit on merchandise returned to Flynn Company $300.
13 Purchased store supplies from Beran Supply $720.
15 Purchased merchandise from Carlin Company $3,600 and from Ruiz Company $2,900.
16 Made sales to Martin Company $3,450 and to Franklin Bros. $1,570.
18 Received bill for advertising from Marlin Advertisements $600.
21 Made sales to Nance Company $310 and to Randee Company $2,300.
22 Granted allowance to Nance Company for merchandise damaged in shipment $40.
24 Purchased merchandise from Flynn Company $3,000.
26 Purchased equipment from Beran Supply $600.
28 Received freight bill from Johnson Shipping on Flynn purchase of July 24, $380.
30 Made sales to Martin Company $4,900.

Instructions
  (a) Journalize the transactions above in a purchases journal, a sales journal, and a general journal. The purchases journal should have the following column headings: Date, Account Credited (Debited), Ref., Other Accounts Dr., and Merchandise Inventory Dr., Accounts Payable Cr.
  (b) Post to both the general and subsidiary ledger accounts. (Assume that all accounts have zero beginning balances.)
  (c) Prove the agreement of the control and subsidiary accounts.