Some of the ledger accounts for the Sanderson Hardware Company are numbered and listed below. For each of the October 2011 transactions numbered 1 through 12 below, indicate by account number which accounts should be debited and which should be credited. The company uses the perpetual inventory system. Assume that appropriate adjusting entries were made at the end of September.
- Accounts payable Equipment Inventory
- Accounts receivable Cash Supplies
- Supplies expense Prepaid rent Sales revenue
- Retained earnings Note payable Common stock
- Unearned revenue Rent expense Wages payable
- Cost of goods sold Wage expense Interest expense
- Example: Account debited Accound credited
Purchased inventory for cash > >> inventory cash
1. Paid a cash dividend.
2. Paid rent for the next three months.
3. Sold goods to customers on account.
4. Purchased inventory on account.
5. Purchased supplies for cash.
6. Paid employees wages for September.
7. Issued common stock in exchange for cash.
8. Collected cash from customers for goods sold in 3.
9. Borrowed cash from a bank and signed a note.
10. At the end of October, recorded the amount of supplies that had been used during the month.
11. Received cash for advance payment from customer.
12. Accrued employee wages for October.