Question

Show Me HOW C asulator Transactions and Accounts orto con Journal Accounts Final Question The following selected transactions were completed during March of the current year March 1 fed customers for lees enned554100 4 Purchased supplies on account, $1.250. 8 11 Received cash from customers on account, 543,800 Paid creditors on account, $600 Required: A Journalize these transactions in a two-column journal. Refer to the list of accounts in the accounts for exact wording of account titles B. Post the entries prepared in (A) to the following accounts: Cash, Supplies, Accounts Receivable, Accounts Payable, Foes Earned. To the left of each amount posted in the accounts, select the appropriate date C. Assume that the unadusted trial balance on March 31 shows a credit balance for Accounts Receivable. Does this credit balance mean an error has occurred? 4:53 PM 40 2/9/2020

Answer 1

A. The journal entry to record the transaction is as follows:

Date	Account Title and Explanation	Debit ($)	Credit ($)
Mar-01	Accounts Receivable	54,100
	Fees Earned		54,100
	(To record the fees earned)
Date	Account Title and Explanation	Debit ($)	Credit ($)
Mar-04	Supplies account	1,250
	Accounts payable		1,250
	(To Record the purchase of supplies)
Date	Account Title and Explanation	Debit ($)	Credit ($)
Mar-08	Cash account	43,800
	Accounts receivable		43,800
	(To record cash received from customer)
Date	Accounts title and Explanation	Debit ($)	Credit ($)
Mar-11	Accounts payable	600
	Cash account		600
	(To record the cash paid to creditors)

B. The posting of the transaction to the T-accounts is as follows:

Cash Account
Particulars	Amount ($)	Particulars	Amount ($)
To Accounts Receivable	43,800	By Accounts payable	600
Accounts Receivable
Particulars	Amount ($)		Amount ($)
To fees earned	54,100	By Cash	43,800
Supplies
Particulars	Amount ($)		Amount ($)
To Accounts Payable	1,250
Accounts Payable
Particulars	Amount ($)		Amount ($)
To Cash	600	By supplies	1,250
Fees earned
Particulars	Amount ($)		Amount ($)
		By accounts receivable	54,100

C. The accounts receivable accounts are an assets account, the normal balance of these accounts is always debit, increase in this account always debited and decrease in the account always credited. If the unadjusted trial balance shows the credit balance it means there was some error occurred.

Therefore, the 1st option (Yes) is correct.