Question

The following selected transactions were completed during August of the current year: Transactions Aug. 1 Billed...

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

Transactions
Aug. 1 Billed customers for fees earned, $74,310.
4 Purchased supplies on account, $2,000.
8 Received cash from customers on account, $62,770.
11 Paid creditors on account, $900.
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 Accounts

CHART OF ACCOUNTS
ch2Generic
General 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

Journal

A. Journalize these transactions in a two-column journal. Refer to 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

T Accounts

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 Payable
Supplies
Fees Earned
Accounts Receivable

Final Question

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?

Yes

No

Homework Answers

Answer #1

A.

B.

C.

No, credit balance for accounts receivable does not mean that an error has occured.

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