Transactions and T Accounts

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

Billed customers for fees earned, $59,940.

Purchased supplies on account, $2,580.

Received cash from customers on account, $56,340.

Paid creditors on account, $1,560.

Question Content Area

a. Journalize these transactions in a two-column journal, using the appropriate number to identify the transactions. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank.

Transaction	Account	Debit	Credit
(1)
(2)
(3)
(4)

Question Content Area

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 number to identify the transaction.

Cash

Transaction	Debit amount	Transaction	Credit amount

Accounts Payable

Transaction	Debit amount	Transaction	Credit amount

Supplies

Transaction	Debit amount	Transaction	Credit amount

Fees Earned

Transaction	Debit amount	Transaction	Credit amount

Accounts Receivable

Transaction	Debit amount	Transaction	Credit amount

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