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Transactions and T Accounts

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

1. Billed customers for fees earned, \[tex]$112,700.
2. Purchased supplies on account, \$[/tex]4,500.
3. Received cash from customers on account, \[tex]$88,220.
4. Paid creditors on account, \$[/tex]3,100.

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.

[tex]\[
\begin{array}{llll}
(1) & \square & \square & \square \\
& \square & \square & \square \\
(2) & \square & \square & \square \\
& \square & \square & \square \\
(3) & \square & \square & \square \\
& \square & \square & \square \\
(4) & \square & \square & \square \\
& \square & \square & \square \\
\end{array}
\][/tex]

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.

[tex]\[
\begin{array}{llll}
& \square \\
\text{Accounts Payable} & \square \\
\end{array}
\][/tex]

Sagot :

GinnyAnsweridn
Certainly! Let's break down the problem step-by-step and fill in the required details.

### Part (a) Journalize the Transactions

1. Billed customers for fees earned, \[tex]$112,700. - Debit: Accounts Receivable \$[/tex]112,700
- Credit: Fees Earned \[tex]$112,700 ``` (1) Accounts Receivable 112,700 Fees Earned 112,700 ``` 2. Purchased supplies on account, \$[/tex]4,500.

- Debit: Supplies \[tex]$4,500 - Credit: Accounts Payable \$[/tex]4,500

```
(2)
Supplies 4,500
Accounts Payable 4,500
```

3. Received cash from customers on account, \[tex]$88,220. - Debit: Cash \$[/tex]88,220
- Credit: Accounts Receivable \[tex]$88,220 ``` (3) Cash 88,220 Accounts Receivable 88,220 ``` 4. Paid creditors on account, \$[/tex]3,100.

- Debit: Accounts Payable \[tex]$3,100 - Credit: Cash \$[/tex]3,100

```
(4)
Accounts Payable 3,100
Cash 3,100
```

### Part (b) Post to the T Accounts
Now, let's post each of these transactions to the relevant T accounts.

#### Cash
```
-------------------------------
Cash
-------------------------------
(3) 88,220 |
| (4) 3,100
-------------------------------
Total: 85,120 |
-------------------------------
```

#### Supplies
```
-------------------------------
Supplies
-------------------------------
(2) 4,500 |
-------------------------------
Total: 4,500 |
-------------------------------
```

#### Accounts Receivable
```
--------------------------------------
Accounts Receivable
--------------------------------------
(1) 112,700 |
| (3) 88,220
--------------------------------------
Total: 24,480 |
--------------------------------------
```

#### Accounts Payable
```
--------------------------------------
Accounts Payable
--------------------------------------
| (4) 3,100
(2) 4,500 |
--------------------------------------
Total: 1,400 |
--------------------------------------
```

#### Fees Earned
```
--------------------------------------
Fees Earned
--------------------------------------
(1) 112,700 |
--------------------------------------
Total: 112,700 |
--------------------------------------
```

In summary, we created the journal entries based on each transaction and then posted these entries to the relevant T accounts (Cash, Supplies, Accounts Receivable, Accounts Payable, and Fees Earned). We identified each transaction with its corresponding number for clarity. This will help ensure the accuracy and traceability of each entry.
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