Question

Geo Inc. had the following account balances on January 1, Year 2. Accounts Payable Accounts Receivable Cashi Common Stock Equipment Notes Payable Retained Earnings Salaries and Wages Expense Supplies 5728 2,300 2,300 20,000 3,100 4,400 4,536 4.800 1.660 A Paid $728 on account for utilities that were used during December Year 1 B. Purchased $488 of supplies for cash. C. Signed a rental agreement for office space and paid $6,100 in advance for six months of rent beginning February 1, Year 2 D. Purchased $18,000 of new equipment, signing a promissory note. E. Provided $32,500 of services. $16,000 was received in cash and $16,500 was provided on credit. F. Paid workers $7.400 for work done in January Required: Prepare journal entries for each of the following January activities, and post results to the relevant T-accounts. Compute the ending balance of each T-account Beginning balances have been entered. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Complete this question by entering your answers in the tabs below. General Journal T Accounts

Answer 1

Journal Entries:
Date	Accounts Title	Debit $	Credit $
A	Accounts Payable	728
	Cash		728
	(creditors on account of utilities paid)
B	Supplies	488
	Cash		488
	(purchased supplies of cash)
C	Prepaid rent	6100
	Cash		6100
	(being prepaid rent for next six months made)
D	Equipment	18000
	Note payable		18000
	(equipment purchased for equipment purchase)
E	Cash	16000
	Accounts Receivable	16500
	Service revenue		32500
	(being service revenue recorded)
F	Salaries & Wages expense	7400
	Cash		7400
	(salaries and wages paid for january)

T-Accounts:
DEBIT	AMOUNT $	CREDIT	AMOUNT $
Accounts Payable a/c
A	728	OB	728
Accounts Receivable a/c
OB	2300	CB	18800
E	16500
Cash a/c
OB	2300	A	728
E	16000	B	488
		C	6100
		F	7400
		CB	3584
Common Stock a/c
		OB	20000
Equipment a/c
OB	3100	CB	21100
D	18000
Notes payable a/c
CB	22400	OB	4400
		D	18000
Retained Earnings a/c
		OB	4536
Salaries and wages Expense a/c
OB	4800	CB	12200
F	7400
Supplies a/c
OB	1660	CB	2148
B	488
Service Revenue a/c
		E	32500
Prepaid Rent a/c
C	6100