Question

Transactions and T Accounts The following selected transactions were completed during July of the current year: Billed customers for fees earned, $46,980. Purchased supplies on account, $2,020. Received cash from customers on account, $44,160. Paid creditors on account, $1,220. a. Journalize these transactions in a two-column journal, using the appropriate number to identify the transactions. If an amount box does not require an entry, leave it blank. (1) Accounts Receivable 46,980 Fees Earned 46,980 (2) Supplies 2,020 Accounts Payable 2,020 (3) Accounts Receivable 44,160 Cash 44,160 (4) Accounts Payable 1,220 Cash 1,220 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 Accounts Payable Supplies Fees Earned Accounts Receivable 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?

Answer 1

(C) The Account receivable is debited for credit sales

(C) The Account receivable is debited for credit sales

(C) The Account receivable is debited for credit sales

(C) The Account receivable is debited for credit sales

(C) The Account receivable is debited for credit sales

(C) The Account receivable is debited for credit sales

(C) The Account receivable is debited for credit sales

Step-by-step explanation:

for people with ads

Answer 2

Cash Account receivable:

Debit Credit debit credit

44,160 46,980

1,220 44,160

42,940 Balance 2,820 Balance

Supplies Fees Earned

debit credit debit credit

2,020 46,980

Account payable

debit credit

2,020

1,220

800 Balance

(C) The Account receivable is debited for credit sales

and is credited when those sales are collected, as no one will pay more than he owes, the Account receivable cannot have a credit balance, if the company sales 100 it can collect at most 100

So if AR has a credit balance, it implies the company collect more than it sold. Which is impossible and therefore, an acounting error.

Step-by-step explanation:

To do the t-accounts we will post each value of the journal entries under each account.

In your assignment we are given with the jornals entries:

(1) Accounts Receivable 46,980 debit

Fees Earned 46,980 credit

(2) Supplies 2,020 debit

Accounts Payable 2,020 credit

(3) Accounts Receivable 44,160 debit

Cash 44,160 credit

(4) Accounts Payable 1,220 debit

Cash 1,220 credit

To transfer this into T-accounts we will do a single t-account per account.

Then under each T-account we will write he exact number under the same side as it was in the journal.

Notice the Debit of 44,160 for cash accounts is displayed the same way on cash T-accounts

we just need to copy no calcualtion needed.

Lastly, on accounting we don't put the dollar sing as it is implicit that accounting only works with dollars value.