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Geo Inc. had the following account balances on January 1, Year 2: Accounts Payable $ 710...

Geo Inc. had the following account balances on January 1, Year 2: Accounts Payable $ 710 Accounts Receivable 1,700 Cash 1,700 Common Stock 15,000 Equipment 1,900 Note Payable 3,200 Retained Earnings 3,786 Salaries and Wages Expense 4,200 Supplies 940 Required: Prepare journal entries for each of the following January activities, and post results to the relevant T-accounts. Compute the ending balance of each T-account. Beginning balances have been entered. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) A. Paid $710 on account for utilities that were used during December Year 1. B. Purchased $458 of supplies for cash. C. Signed a rental agreement for office space and paid $4,900 in advance for six months of rent beginning February 1, Year 2. D. Purchased $15,000 of new equipment, signing a promissory note. E. Provided $29,500 of services. $15,000 was received in cash and $14,500 was provided on credit. F. Paid workers $6,200 for work done in January.

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Transaction

 General Journal Debit Credit
A. Accounts Payable ( Utiliities) $710
       Cash $710
( To record the payment of utilities
B. Supplies $458
      Cash $458
( To record the purchase of supplies using cash)
C. Prepaid office rent $4,900
      Cash $4,900
( To record the advance payment towards rent)
D. Equipment $15,000
      Notes payable $15,000
( To record the purchase of the equipment using notes payable)
E. Cash $15,000
Accounts Receivable $14,500
      Service revenue $29,500
( To record the service revenue)
F. Salaries and Wages Expenses $6,200
      Cash $6,200
( To record the payment of cash towards salaries and Wages)
Cash
Debit Credit
Beginning balance $1,700 Transaction A $710
Transaction E $15,000 Transaction B $458
Transaction C $4,900
Transaction F $6,200
Ending cash balance $4,432
Total $16,700 Total $16,700
Ending balance $4,432
Accounts Receivable
Beginning balance $1,700
Transaction E $14,500
Ending balance $16,200
Supplies
Beginning Balance $940
Transaction B $458
Ending balance $1,398
Prepaid Rent
Beginning balance $0
Transaction C $4,900
Ending balance $3,900
Equipment
Beginning balance $1,900
Transaction D $15,000
Ending balance $16,900
Accounts Payable
Beginning balance $710
Transaction A $710
Ending balance $0
Notes Payable
Beginning balance $3,200
Transaction D $15,000
Ending balance $18,200
Common Stock
Beginning balance $10,000
Ending balance $10,000
Retained Earnings
Beginning balance $3,786
Ending balance
Service Revenue
Beginning balance $0
Transaction E $29,500
Ending balance $29,500
Salaries and Wages Expenses
Beginning balance $4,200
Transaction F $6,200
Ending balance $10,400

ekkarill92 answered 2 years ago
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