Homework Help is Here – Start Your Trial Now!
Business
Accounting
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
See similar textbooks
icon
Related questions
Question

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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Double entry bookkeeping system
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS