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Post the following February transactions to T-accounts for Accounts Receivable and Cash, indicating the ending balance (assume no beginning balances in these accounts). A. Provided legal services to customers for cash, $5,700 B. Provided legal services to customers on account, $4,700 C. Collected cash from customer accounts, $3,500

Post the following February transactions to T-accounts for Accounts Receivable and Cash, indicating the ending balance (assume no beginning balances in these accounts). A. Provided legal services to customers for cash, $5,700 B. Provided legal services to customers on account, $4,700 C. Collected cash from customer accounts, $3,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Post the following February transactions to T-accounts for Accounts Receivable and Cash, indicating the ending balance (assume no beginning balances in these accounts).

A. Provided legal services to customers for cash, $5,700

B. Provided legal services to customers on account, $4,700

C. Collected cash from customer accounts, $3,500

### February Transactions and T-Accounts for Accounts Receivable and Cash #### Transactions: 1. **A. Provided legal services to customers for cash, $5,700** 2. **B. Provided legal services to customers on account, $4,700** 3. **C. Collected cash from customer accounts, $3,500** #### T-Account Entries: **Cash Account:** - An increase of $5,700 (from transaction A) is recorded. - An increase of $3,500 (from transaction C) is recorded. - The ending balance is beneath these entries. **Accounts Receivable:** - An increase of $4,700 (from transaction B) is recorded. - A decrease of $3,500 (from transaction C) is recorded. - The ending balance is beneath these entries. ### Description of T-Accounts: #### Cash: - The left side of the T-account shows debits to cash, reflecting an increase in cash. - Starting with $5,700 from cash payments received for services, the latter entry of $3,500 reflects cash collection from accounts receivable. - The sum at the bottom represents the total cash held at the end of the period. #### Accounts Receivable: - The left side reflects an increase in accounts receivable of $4,700, due to services provided on account. - The right side lists the $3,500 decrease from cash collected. - The balance at the end shows outstanding amounts still owed by customers.
Transcribed Image Text:### February Transactions and T-Accounts for Accounts Receivable and Cash #### Transactions: 1. **A. Provided legal services to customers for cash, $5,700** 2. **B. Provided legal services to customers on account, $4,700** 3. **C. Collected cash from customer accounts, $3,500** #### T-Account Entries: **Cash Account:** - An increase of $5,700 (from transaction A) is recorded. - An increase of $3,500 (from transaction C) is recorded. - The ending balance is beneath these entries. **Accounts Receivable:** - An increase of $4,700 (from transaction B) is recorded. - A decrease of $3,500 (from transaction C) is recorded. - The ending balance is beneath these entries. ### Description of T-Accounts: #### Cash: - The left side of the T-account shows debits to cash, reflecting an increase in cash. - Starting with $5,700 from cash payments received for services, the latter entry of $3,500 reflects cash collection from accounts receivable. - The sum at the bottom represents the total cash held at the end of the period. #### Accounts Receivable: - The left side reflects an increase in accounts receivable of $4,700, due to services provided on account. - The right side lists the $3,500 decrease from cash collected. - The balance at the end shows outstanding amounts still owed by customers.
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