The following selected transactions were completed during January of the current year: 1. Billed customers for fees earned, $48,600.

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

1. Billed customers for fees earned, $48,600.
2. Purchased supplies on account, $1,975.
3. Received cash from customers on account, $31,400.
4. Paid creditors on account, $1,350.

a. Journalize the above 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 transactions.
c. Assume that the unadjusted trial balance on January 31 shows a credit balance for Accounts Receivable. Does this credit balance mean an error has occurred?

Answer:

a.
Accounts Receivable 48,600  Fees Earned  48,600  Supplies 1,975  Accounts Payable  1,975  Cash 31,400  Accounts Receivable  31,400  Accounts Payable 1,350  Cash  1,350 


b. 
Cash Accounts Payable (3) 31,400 (4) 1,350 (4) 1,350 (2) 1,975    Supplies  Fees Earned  (2) 1,975  (1) 48,600  
Accounts Receivable (1) 48,600 (3) 31,400 






c. No. A credit balance in Accounts Receivable could occur if a customer overpaid his or her account. Regardless, the credit balance should be investigated to verify that an error has not occurred.