The debits and credits from two transactions are presented in the following creditor’s (supplier’s) account:
NAME Colonial Inc.
ADDRESS 5000 Grand Ave.
Date Item
Post.
Ref. Debit Credit Balance
Jan. 1 Balance ✓ 92
11 Invoice No. 122 CP71 64 28
26 Invoice No. 139 P5572 100
Describe each transaction and the source of each posting.
Answers:
Jan.
11. Paid $64 to Colonial Inc. on account (Invoice No. 122). Amount posted from Page 71 of the cash payments journal.
26. Made purchases of $72 on account from Colonial Inc. (Invoice No. 139). Amount posted from Page 55 of the purchases journal.