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?
a. cash and fees earned
b. cash and prepaid insurance
c. cash and allen, capital
d. cash and accounts receivable
2. for part (h), which two accounts are affected?
a. fees earned and cash
b. wages expense and cash
c. accounts payable and cash
d. rent expense and cash
3. for part (a), which two accounts are affected?
a. accounts receivable and fees earned
b. supplies and accounts payable
c. cash and accounts receivable
d. rent expense and cash
4. for part (j), which accounts are affected?
a. supplies, allen, capital and cash
b. accounts receivable and cash
c. cash and accounts receivable
d. allen, withdrawal and cash
5. for part (b), what is the cash balance?
a.$45,000
b.$20,000
c.$25,000
d.$10,000