(Solution) - Starr Company s chart of accounts includes the following selecte -(2025 Original AI-Free Solution)

Paper Details

Starr Company?s chart of accounts includes the following selected accounts.
101 Cash.......... 157 Equipment
120 Merchandise Inventory.. 201 Accounts Payable
130 Prepaid Insurance.... 306 R. Starr, Drawing
On November 1 the accounts payable ledger of Starr Company showed the following balances:
P. McCartney $4,000, J. Lennon $2,100, G. Harrison $800, and J. Lynne $1,300. The November transactions involving the payment of cash were as follows.
Nov. 1 Purchased merchandise, check no. 11, $950.
3 Purchased store equipment, check no. 12, $1,400.
5 Paid J. Lynne balance due of $1,300, less 1% discount, check no. 13, $1,287.
11 Purchased merchandise, check no. 14, $1,700.
15 Paid G. Harrison balance due of $800, less 3% discount, check no. 15, $776.
16 R. Starr, the owner, withdrew $400 cash for own use, check no. 16.
19 Paid J. Lennon in full for invoice no. 1245, $2,100 less 2% discount, check no. 17, $2,058.
25 Paid premium due on one-year insurance policy, check no. 18, $2,400.
30 Paid P. McCartney in full for invoice no. 832, $2,900, check no. 19.
Instructions
(a) Journalize the transactions above in a four-column cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr., Merchandise Inventory Cr., and Cash Cr. Foot and crossfoot the journal.
(b) Insert the beginning balances in the Accounts Payable control and subsidiary accounts, and post the November transactions to these accounts.
(c) Prove the agreement of the control account and the subsidiary account balances.