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

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

	Required:
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.
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 July 31 shows a credit balance for Accounts Receivable. Does this credit balance mean an error has occurred?

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