Question

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.

Answer 1

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