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

112 Accounts Receivable

120 Inventory

126 Supplies

157 Equipment

201 Accounts Payable

401 Sales Revenue

412 Sales Returns and Allowances

505 Cost of Goods Sold

610 Advertising Expense

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 Dent Company $7,600.

2 Received freight bill from Rensing Shipping on Dent purchase $400.

3 Made sales to Dayley Company $1,300 and to Orsen Bros. $2,000.

5 Purchased merchandise from Langer Company $3,200.

8 Received credit on merchandise returned to Langer Company $300.

13 Purchased store supplies from Abel Supply $910.

15 Purchased merchandise from Dent Company $3,600 and from Goran Company $3,300.

16 Made sales to Gentry Company $3,450 and to Orsen Bros. $1,570.

18 Received bill for advertising from Wei Advertisements $600.

21 Made sales to Dayley Company $310 and to Musky Company $2,800.

22 Granted allowance to Dayley Company for merchandise damaged in shipment $65.

24 Purchased merchandise from Langer Company $3,000.

26 Purchased equipment from Abel Supply $900.

28 Received freight bill from Rensing Shipping on Langer purchase of July 24, $380.

30 Made sales to Gentry Company $5,600.

Instructions

(a) Journalize the preceding transactions 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., Accounts Payable Cr., Inventory Dr., and Other Accounts Dr.

(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