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Transactions and T Accounts The following selected transactions were completed during October of the current year: Billed customers for fees earned, $40,020. Purchased supplies on

Transactions and T Accounts

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

Billed customers for fees earned, $40,020.

Purchased supplies on account, $1,720.

Received cash from customers on account, $37,620.

Paid creditors on account, $1,040.

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)

Accounts PayableAccounts ReceivableCashFees EarnedFees Expense

- Select - - Select -

Accounts PayableAccounts ReceivableCashFees EarnedFees Expense

- Select - - Select -
(2)

Accounts PayableCashSuppliesSupplies PayableSupplies Receivable

- Select - - Select -

Accounts PayableCashSuppliesSupplies PayableSupplies Receivable

- Select - - Select -
(3)

Accounts PayableAccounts ReceivableCashFees EarnedFees Expense

- Select - - Select -

Accounts PayableAccounts ReceivableCashFees EarnedFees Expense

- Select - - Select -
(4)

Accounts PayableAccounts ReceivableCashFees EarnedFees Expense

- Select - - Select -

Accounts PayableAccounts ReceivableCashFees EarnedFees Expense

- Select - - Select -

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
fill in the blank 1 of 16

(1)(2)(3)(4)

fill in the blank 2 of 16 fill in the blank 3 of 16

(1)(2)(3)(4)

fill in the blank 4 of 16

Accounts Payable
Transaction Debit amount Transaction Credit amount
fill in the blank 5 of 16

(1)(2)(3)(4)

fill in the blank 6 of 16 fill in the blank 7 of 16

(1)(2)(3)(4)

fill in the blank 8 of 16

Supplies
Transaction Debit amount Transaction Credit amount
fill in the blank 9 of 16

(1)(2)(3)(4)

fill in the blank 10 of 16

Fees Earned
Transaction Debit amount Transaction Credit amount
fill in the blank 11 of 16

(1)(2)(3)(4)

fill in the blank 12 of 16

Accounts Receivable
Transaction Debit amount Transaction Credit amount
fill in the blank 13 of 16

(1)(2)(3)(4)

fill in the blank 14 of 16 fill in the blank 15 of 16

(1)(2)(3)(4)

fill in the blank 16 of 16

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?

YesNo

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