Question

Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Jason Payne, Capital; Jason Payne, Drawing; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.

Oct. 1. Paid rent for the month, $3,000.

3. Paid advertising expense, $1,940.

5. Paid cash for supplies, $830.

6. Purchased office equipment on account, $12,700.

10. Received cash from customers on account, $4,160.

15. Paid creditors on account, $1,220.

27. Paid cash for miscellaneous expenses, $530.

30. Paid telephone bill (utility expense) for the month, $190.

31. Fees earned and billed to customers for the month, $27,700.

31. Paid electricity bill (utility expense) for the month, $330.

31. Withdrew cash for personal use, $2,100.

Journalize the selected transactions for October 2019.

2019 Oct. 1  2019 Oct. 3  2019 Oct. 5  2019 Oct. 6  2019 Oct. 10  2019 Oct. 15  2019 Oct. 27  2019 Oct. 30  Oct. 31: Fees earned  Oct. 31: Paid bill  Oct. 31: Withdrawal  

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

	DATE	ACCOUNT TITLE	DEBIT	CREDIT
	Oct,1	Rent Expense	$3,000
		Cash		$3,000
	Oct,3	Advertising Expense	$1,940
		Cash		$1,940
	Oct,5	Supplies	$830
		Cash		$830
	Oct,6	Office Equipment	$12,700
		Accounts Payable		$12,700
	Oct,10	Cash	$4,160
		Accounts Receivable		$4,160
	Oct,15	Accounts Payable	$1,220
		Cash		$1,220
	Oct,27	Miscellaneous Expense	$530
		Cash		$530
	Oct,30	Utilities Expense	$190
		Cash		$190
	Oct,31	Accounts Receivable	$27,700
		Fees Earned		$27,700
	Oct,31	Drawing	$2,100
		Cash		$2,100
	Oct,31	Utilities expense	$330
		Cash		$330
		CASH
	Date	Description	Debit	Credit
	Oct,1	Rent Expense		$3,000
	Oct,3	Advertising Expense		$1,940
	Oct,5	Supplies		$830
	Oct,10	Accounts Receivable	$4,160
	Oct,15	Accounts Payable		$1,220
	Oct,27	Miscellaneous Expense		$530
	Oct,30	Utilities Expense		$190
	Oct,31	Drawing		$2,100
	Oct,31	Utilities expense		$330
		SUPPLIES
	Date	Description	Debit	Credit
	Oct,5	Cash	$830
		ACCOUNTS RECEIVABLE
	Date	Description	Debit	Credit
	Oct,10	Cash		$4,160
	Oct,31	Fees Earned	$27,700
		ACCOUNTS PAYABLE
	Date	Description	Debit	Credit
	Oct,6	Office Equipment		$12,700
	Oct,15	Cash	$1,220
		FEES EARNED
	Date	Description	Debit	Credit
	Oct,31	Accounts Receivable		$27,700