Question

Record the following selected transactions for January in a two‐column journal. Once you have completed that, answer questions 1 – 5 related to your work.

(a) Earned $7,000 fees; customer will pay later.

(b) Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit

(c) Paid $3,000 for rent for January.

(d) Purchased $2,500 of supplies on account.

(e) A. Allen $1,000 investment in the company.

(f) Received $7,000 in cash for fees earned previously.

(g) Paid $1,200 to creditors on account.

(h) Paid wages of $6,250.

(i) Received $7,150 from customers on account.

(j) A. Allen withdrawal of $1,750.



3. For part (a), which two accounts are affected?

A. Accounts receivable and fees earned

B. Supplies and accounts payable

C. Cash and accounts receivable

D. Rent expense and cash

Answer 1

the right answer is A; Accounts receivable and fees earned

Step-by-step explanation:

the fees belong to a sub-account that is part of the group of debtors and are active class, which means that the dynamics of this sub-account will be debited.

because it is a pending value to collect.