Answer :
Certainly! Let's break down the problem step-by-step and fill in the required details.
### Part (a) Journalize the Transactions
1. Billed customers for fees earned, \[tex]$112,700. - Debit: Accounts Receivable \$[/tex]112,700
- Credit: Fees Earned \[tex]$112,700 ``` (1) Accounts Receivable 112,700 Fees Earned 112,700 ``` 2. Purchased supplies on account, \$[/tex]4,500.
- Debit: Supplies \[tex]$4,500 - Credit: Accounts Payable \$[/tex]4,500
```
(2)
Supplies 4,500
Accounts Payable 4,500
```
3. Received cash from customers on account, \[tex]$88,220. - Debit: Cash \$[/tex]88,220
- Credit: Accounts Receivable \[tex]$88,220 ``` (3) Cash 88,220 Accounts Receivable 88,220 ``` 4. Paid creditors on account, \$[/tex]3,100.
- Debit: Accounts Payable \[tex]$3,100 - Credit: Cash \$[/tex]3,100
```
(4)
Accounts Payable 3,100
Cash 3,100
```
### Part (b) Post to the T Accounts
Now, let's post each of these transactions to the relevant T accounts.
#### Cash
```
-------------------------------
Cash
-------------------------------
(3) 88,220 |
| (4) 3,100
-------------------------------
Total: 85,120 |
-------------------------------
```
#### Supplies
```
-------------------------------
Supplies
-------------------------------
(2) 4,500 |
-------------------------------
Total: 4,500 |
-------------------------------
```
#### Accounts Receivable
```
--------------------------------------
Accounts Receivable
--------------------------------------
(1) 112,700 |
| (3) 88,220
--------------------------------------
Total: 24,480 |
--------------------------------------
```
#### Accounts Payable
```
--------------------------------------
Accounts Payable
--------------------------------------
| (4) 3,100
(2) 4,500 |
--------------------------------------
Total: 1,400 |
--------------------------------------
```
#### Fees Earned
```
--------------------------------------
Fees Earned
--------------------------------------
(1) 112,700 |
--------------------------------------
Total: 112,700 |
--------------------------------------
```
In summary, we created the journal entries based on each transaction and then posted these entries to the relevant T accounts (Cash, Supplies, Accounts Receivable, Accounts Payable, and Fees Earned). We identified each transaction with its corresponding number for clarity. This will help ensure the accuracy and traceability of each entry.
### Part (a) Journalize the Transactions
1. Billed customers for fees earned, \[tex]$112,700. - Debit: Accounts Receivable \$[/tex]112,700
- Credit: Fees Earned \[tex]$112,700 ``` (1) Accounts Receivable 112,700 Fees Earned 112,700 ``` 2. Purchased supplies on account, \$[/tex]4,500.
- Debit: Supplies \[tex]$4,500 - Credit: Accounts Payable \$[/tex]4,500
```
(2)
Supplies 4,500
Accounts Payable 4,500
```
3. Received cash from customers on account, \[tex]$88,220. - Debit: Cash \$[/tex]88,220
- Credit: Accounts Receivable \[tex]$88,220 ``` (3) Cash 88,220 Accounts Receivable 88,220 ``` 4. Paid creditors on account, \$[/tex]3,100.
- Debit: Accounts Payable \[tex]$3,100 - Credit: Cash \$[/tex]3,100
```
(4)
Accounts Payable 3,100
Cash 3,100
```
### Part (b) Post to the T Accounts
Now, let's post each of these transactions to the relevant T accounts.
#### Cash
```
-------------------------------
Cash
-------------------------------
(3) 88,220 |
| (4) 3,100
-------------------------------
Total: 85,120 |
-------------------------------
```
#### Supplies
```
-------------------------------
Supplies
-------------------------------
(2) 4,500 |
-------------------------------
Total: 4,500 |
-------------------------------
```
#### Accounts Receivable
```
--------------------------------------
Accounts Receivable
--------------------------------------
(1) 112,700 |
| (3) 88,220
--------------------------------------
Total: 24,480 |
--------------------------------------
```
#### Accounts Payable
```
--------------------------------------
Accounts Payable
--------------------------------------
| (4) 3,100
(2) 4,500 |
--------------------------------------
Total: 1,400 |
--------------------------------------
```
#### Fees Earned
```
--------------------------------------
Fees Earned
--------------------------------------
(1) 112,700 |
--------------------------------------
Total: 112,700 |
--------------------------------------
```
In summary, we created the journal entries based on each transaction and then posted these entries to the relevant T accounts (Cash, Supplies, Accounts Receivable, Accounts Payable, and Fees Earned). We identified each transaction with its corresponding number for clarity. This will help ensure the accuracy and traceability of each entry.