Question

Answer all please.

The following selected transactions were completed during August of the current year:

1. Billed customers for fees earned, $60,240.
2. Purchased supplies on account, $2,590.
3. Received cash from customers on account, $56,630.
4. Paid creditors on account, $1,570.

a. Journalize these transactions in a two-column journal, using the appropriate number to identify the transactions.

(1)	Accounts Receivable
	Fees Earned
(2)	Supplies
	Accounts Payable
(3)	Cash
	Accounts Receivable
(4)	Accounts Payable
	Cash

Feedback

a. Identify the type of accounts affected in each transaction. Determine whether the account increases or decreases and record each increase or decrease following the rules of debit and credit. Remember total debits should equal total credits in your entries.

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 transactions.

Cash
(3)		(4)

Supplies
(2)

Accounts Receivable
(1)		(3)

Accounts Payable
(4)		(2)

Fees Earned
		(1)

c. Assume that the unadjusted trial balance on August 31 shows a credit balance for Accounts Receivable. Does this credit balance mean an error has occurred?
No

Answer 1

$ 60,240 $ 60,240 $ 2,590 Answer a. Accounts Receivable Fees Earned Supplies Accounts Payable Cash Accounts Receivable Accounts Payable Cash $ 2,590 $ 56,630 $ 56,630 $ 1,570 $ 1,570 Answer b. (3) $ 1,570 (2) (1) Cash $ 56,630 (4) Supplies $ 2,590 Accounts Receivable $ 60,240 (3) Accounts Payable $ 1,570 (2) Fees Earned T (1) $ 56,630 (4) $ 2,590 T $ 60,240 Answer c. No. Debtor might have paid extra money to cover future debt. But, this credit balance should be verified whether there is any error or not.