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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Post the following February transactions to T-accounts for
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7e38550-eb9e-4148-b5f4-8f82d0a62b02%2Fd861ca66-1d05-463c-a076-7f40513edf1b%2Fumor2te_processed.jpeg&w=3840&q=75)
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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