Reference no: EM132874998

Problem - Journalizing and posting - On February 3, 2012, Wilco Co. purchased $3,250 of supplies on account. In Wilco Co.'s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21.

Required -

a. Journalize the February 3, 2012, transaction on page 19 of Wilco Co.'s two-column journal. Include an explanation of the entry.

b. Prepare a four-column account for Supplies. Enter a debit balance of $975 as of February 1, 2012. Place a check mark in the Posting Reference column.

c. Prepare a four-column account for Accounts Payable. Enter a credit balance of $13,150 as of February 1, 2012. Place a check mark (√) in the Posting Reference column.

d. Post the February 3, 2012, transaction to the accounts.

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