Reineke Company's chart of accounts includes the following selected accounts. 101 Cash 201 Account payable
120 Inventory 306 Owner's drawings
130 Prepaid insurance 505 Cost of Goods sold
157 Equipment

On October 1, the accounts payable ledger of Sheridan Company showed the following balances: Uggla Company $2,500, Orr Co. $2,510, Rosenthal Co. $1,770, and Clevenger Company $3,750. The October transactions involving the payment of cash were as follows.

Oct. 1 Purchased merchandise, check no. 63, $310.
3 Purchased equipment, check no. 64, $840.
5 Paid Uggla Company balance due of $2,500, less 2% discount, check no. 65, $2,450.00.
10 Purchased merchandise, check no. 66, $2,270.
15 Paid Rosenthal Co. balance due of $1,770, check no. 67.
16 C. Sheridan, the owner, pays his personal insurance premium of $450, check no. 68.
19 Paid Orr Co. in full for invoice no. 610, $2,200 less 2% cash discount, check no. 69, $2,156.00.
29 Paid Clevenger Company in full for invoice no. 264, $2,580, check no. 70.

Required:
Journalize the transactions above.

Reineke Company

Journal Entries:

Oct. 1 Debit 120 Inventory $310

Credit 101 Cash $310

To record the purchase of merchandise via check no. 63

Oct. 3 Debit 157 Equipment, $840

Credit 101 Cash $840

To record the purchase of equipment via check no. 64

Oct. 5 Debit 201 Accounts payable (Uggla Company) $2,500

Credit Cash $2,450

Credit Cash Discounts $50

To record payment on account, less 2% discount, check no. 65

Oct. 10 Debit 120 Inventory $2,270

Credit 101 Cash $2,270

To record the purchase of inventory via check no. 66.

Oct. 15 Debit 201 Accounts payable (Rosenthal Co.) $1,770

Credit 101 Cash $1,770

To record the payment on account by check no. 67.

Oct. 16 Debit 306 Owner's Drawings $450

Credit 101 Cash $450

To record C. Sheridan's payment for his personal insurance premium of $450, check no. 68.

Oct. 19 Debit 201 Accounts payable (Orr Co.) $2,200

Credit 101 Cash $2,156

Credit Cash Discounts $44

To record full payment for invoice no. 610, less 2% cash discount, using check no. 69.

Oct. 29 Debit 201 Accounts payable (Clevenger Company) $2,580

Credit 101 Cash $2,580

To record full payment for invoice no. 264, by check no. 70.

Explanation:

a) Data and Calculations:

Chart of Accounts:

101 Cash  

120 Inventory

130 Prepaid insurance

157 Equipment

201 Account payable

306 Owner's drawings

505 Cost of Goods sold

Accounts Payable balances:

Uggla Company $2,500

Orr Co. $2,510

Rosenthal Co. $1,770

Clevenger Company $3,750

Transactions Analysis:

Oct. 1 120 Inventory $310 101 Cash $310 check no. 63

Oct. 3 157 Equipment, $840 101 Cash $840 check no. 64

Oct. 5 201 Accounts payable (Uggla Company) $2,500 101 Cash $2,450 Cash Discounts $50, less 2% discount, check no. 65

Oct. 10 120 Inventory $2,270 101 Cash $2,270 check no. 66, $2,270.

Oct. 15 201 Accounts payable (Rosenthal Co.) $1,770 101 Cash $1,770, check no. 67.

Oct. 16 306 Owner's Drawings $450 101 Cash $450 for his personal insurance premium of $450, check no. 68.

Oct. 19 201 Accounts payable (Orr Co.) $2,200 101 Cash $2,156 Cash Discounts $44 for invoice no. 610, $2,200 less 2% cash discount, check no. 69, $2,156.00.

Oct. 29 201 Accounts payable (Clevenger Company) $2,580 101 Cash $2,580 for invoice no. 264, $2,580, check no. 70.