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

July1 Billed customers for fees earned, $74,050 july 4 Purchased supplies on account $1,970.. July 8 Received cash from customers on account, $65,290. july 11 Paid creditors on account, $800.

a. Journalize these transactions in a two-column journal. Refer to the list of accounts in the T accounts for exact wording of account titles.

PAGE 1

JOURNAL ACCOUNTING EQUATION

DATE DESCRIPTION POST.REF. DEBIT CREDIT

Assets LIABILITIES EQUITY

1

2

3

4

5

6

7

8

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.

Cash

______ _________ _______ ________

Accounts Receivable

______ _________ _______ ________

Supplies

______ _________

Accounts Payable

______ _________ _______ ________

Fees Earned

_______ ________

c. Assume that the unadjusted trial balance on July 31 shows a credit balance for Accounts Receivable.

Does this credit balance mean an error has occurred?

Yes

No