Question

The following selected transactions were completed during July of the current year: 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) II II II II (3) (4) b. Post the entries prepared in (a) to the following 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

Answer 1

Question (a)

General Journal
Date	Account/Explanation	LF	Debit	Credit
(1)	Accounts Receivable Account	Dr		112,700
	To	Fees Earned Account			112,700
(2)	Supplies Account	Dr		4,500
	To	Accounts Payable Account			4,500
(3)	Cash Account		Dr		88,220
	To	Accounts Receivable Account			88,220
(4)	Accounts Payable Account	Dr		3,100
	To	Cash Account				3,100

Question (b)

Cash Account
Particulars	Amount	Particulars	Amount
To Accounts Receivable	88,220	By Accounts Payable	3,100
		By balance c/d	85,120
		(Bal: fig:)
	88,220		88,220
Accounts Payable Account
Particulars	Amount	Particulars	Amount
To Cash Account	3,100	By Supplies	4,500
To balance c/d	1,400
(Bal: fig:)
	4,500		4,500
Supplies Account
Particulars	Amount	Particulars	Amount
To Accounts Payable	4,500
		By balance c/d	4,500
	4,500		4,500
Fees Earned Account
Particulars	Amount	Particulars	Amount
		By Accounts Receivable	112,700
To Income Statement	112,700
(Bal: fig:)
	112,700		112,700
Accounts Receivable Account
Particulars	Amount	Particulars	Amount
To Fees Earned	112,700	By Cash	88,220
		By balance c/d	24,480
		(Bal: fig:)
	112,700		112,700

Question (c)

The answer is YES.

Accounts receivable is an asset and hence should a debit balance. If in the unadjusted trial balance, it shows a credit balance, then it means that an error has occured.