Chapter 2, Problem 2.9EX

Transactions and T accounts

The following selected transactions were completed during March of the current year:

1. 1. Billed customers for fees earned, $54,100.
2. 2. Purchased supplies on account, $1,250.
3. 3. Received cash from customers on account, $43,800.
4. 4. Paid creditors on account, $600.

• A. Journalize these transactions in a two-column journal, using the appropriate number to identify the transactions. Journal entry explanations may be omitted.
• 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, place the appropriate number to identify the transaction.
• C. Assume that the unadjusted trial balance on March 31 shows a credit balance for Accounts Receivable. Does this credit balance mean an error has occurred?