Question
Geo, Incorporated had the following account balances on January 1, Year 2: Accounts Payable $ 689 Accounts Receivable 1,000 Cash 15,000 Common Stock 10,000 Equipment
Geo, Incorporated had the following account balances on January 1, Year 2: Accounts Payable $ 689 Accounts Receivable 1,000 Cash 15,000 Common Stock 10,000 Equipment 500 Notes Payable 3,000 Retained Earnings 2,911 Salaries and Wages Expense 0 Supplies 100 During January, Year 2, Geo entered into the following transactions: Paid $689 on account for utilities that were used during December, Year 1. Purchased $423 of supplies for cash. Signed a rental agreement for office space and paid $3,500 in advance for six months of rent beginning February 1, Year 2. Purchased $15,000 of new equipment, signing a promissory note. Provided $26,000 of services. $17,000 was received in cash and $9,000 was provided on credit. Paid workers $8,300 for work done in January. Required: Prepare journal entries for each of the above January activities, and post results to the relevant T-accounts. Compute the ending balance of each T-account. Be sure to enter beginning balances
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