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

Transactions

Aug. $1$ Billed customers for fees earned, $$74,050.$

$4$ Purchased supplies on account, $$1,970.$

$8$ Received cash from customers on account, $$62,770.$

$11$ Paid creditors on account, $$800.$

Required:

A$.$ Journalize these transactions in a two$-$column journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is

$11$

Paid creditors on account, $$800.$

Required:

A$.$ Journalize these transactions in a two$-$column journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

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 date.

C$.$ Assume that the unadjusted trial balance on August $31$ shows a credit balance for Accounts Receivable. Does this credit balance mean that an error has occurred?

CHART OF ACCOUNTS

General Ledger

ASSETS

$11$ Cash

$12$ Supplies

$22$ Accounts Receivable

LIABILITIES

$21$ Accounts Payable

REVENUE

$41$ Fees Earned

EXPENSES

$51$ Rent Expense

$52$ Office Salaries Expense

$53$ Automobile Expense

$51$ Rent Expense

LIABILITIES

$52$ Office Salaries Expense

$21$ Accounts Payable

$53$ Automobile Expense

$54$ Supplies Expense

EQUITY

$55$ Miscellaneous Expense

$31$ Owner's, Capital

$32$ Owner's, Drawing