Question

1. Billed customers for fees earned, $112,700.
2. Purchased supplies on account, $4,500.
3. Received cash from customers on account, $88,220.
4. Paid creditors on account, $3,100.

a. Journalize these transactions in a two-column journal, using the appropriate number to identify the transactions. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank.

(1)
(2)
(3)
(4)

b. Post the entries prepared in (a) to the following T accounts: Cash, Supplies, Accounts Receivable, Accounts Payable, Fees Earned. To the left of each amount posted in the accounts, select the appropriate number to identify the transaction.

Cash

Accounts Payable

Supplies

Fees Earned

Accounts Receivable

c. Assume that the unadjusted trial balance on July 31 shows a credit balance for Accounts Receivable. Does this credit balance mean an error has occurred?

Answer 1

Answer:

Answer a.
Date	Account titles and Explanation	Debit ($)	Credit ($)
1	Accounts Receivable	1,12,700
	Fees Earned		1,12,700
2	Supplies	4,500
	Accounts Payable		4,500
3	Cash	88,220
	Accounts Receivable		88,220
4	Accounts Payable	3,100
	Cash		3,100

Answer b.
Cash
3	88,220	4	3,100
Accounts Payable
4	3,100	2	4,500
Supplies
2	4,500
Fees Earned
		1	1,12,700
Accounts Receivable
1	1,12,700	3	88,220

Answer c.

Yes, balance of accounts receivable is shown on debit side of trial balance.