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Record the following selected transactions for January in a two‐column journal. Once you have completed that, answer questions 1 – 5 related to your work.
(a) Earned $7,000 fees; customer will pay later.
(b) Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit
(c) Paid $3,000 for rent for January.
(d) Purchased $2,500 of supplies on account.
(e) A. Allen $1,000 investment in the company.
(f) Received $7,000 in cash for fees earned previously.
(g) Paid $1,200 to creditors on account.
(h) Paid wages of $6,250.
(i) Received $7,150 from customers on account.
(j) A. Allen withdrawal of $1,750.
1. For part (e), which two accounts are affected?
Question 1 options:
Cash and Fees Earned
Cash and Prepaid Insurance
Cash and Allen, Capital
Cash and Accounts Receivable
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Answers: 1
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