Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following selected transactions were completed during August of the current year: Transactions Aug. 1 Billed customers for fees earned, $73,900. 4 Purchased supplies on
The following selected transactions were completed during August of the current year:
Transactions | ||
Aug. | 1 | Billed customers for fees earned, $73,900. |
4 | Purchased supplies on account, $1,960. | |
8 | Received cash from customers on account, $62,770. | |
11 | Paid creditors on account, $820. |
Required: | |
---|---|
A. | Journalize these transactions in a two-column journal. Refer to the T-Accounts for exact wording of account titles. |
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 ACCOUNTSch2GenericGeneral 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 |
54 | Supplies Expense |
55 | Miscellaneous Expense |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started