Question

1. On October 1, the accounts receivable account balance was $208,400. During October, $298,500 was collected from customers on account. Assuming the October 31 balance was $125,300, determine the fees billed to customers on account during October.

2. On November 30, the company accountant discovers that $550 of a transaction recording the purchase of office supplies was really office equipment. Prepare the journal entry to correct this situation.

3. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries when recording business transactions during the month.  Also, indicate the normal balance of each account.

1.	Fees Earned	4.	Supplies
2.	Utilities Expense	5.	Cash
3.	Accounts Payable	6.	Accounts Receivable

4. On December 1, JumpStart Company provides $2,800 in services to clients.

(a) Journalize this event as if the clients had paid cash at the time the services were rendered.

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(b)(1) Journalize this event as if the clients had been rendered the services on account.

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(b)(2) Assume that the clients paid $1,200 of the amount on account on December 30. Journalize this transaction.

5. Prepare a journal entry for the purchase of a truck on April 4 for $85,700, paying $15,000 cash and the remainder on account. Omit explanation.

6. On August 30, JumpStart incurred the following expenses:

         Payment to the landlord for August rent, $2,300

         Payment to the Gas & Electric Company for August’s bill, $525

         Payment of employee wages for the last half of August, $1,750

         Payment of shopping center’s parking lot cleaning fee, $275

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Journalize these payments as one journal entry.

7. On December 1, Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land. Provide the journal entry for this transaction.

8. On January 31, the cash account balance was $96,750.  During January, cash receipts totaled $305,000 and cash payments totaled $375,880.  Determine the cash balance on January 1.

Answer 1

Dear student , as you have submitted multiple questions , i am answering the first four questions here with their sub parts, if any.

1.

the fees billed to customers on account during October is $ 215,400

Explanation:

See below account for explanation.

Accounts receivable account for october.

date		Debit amount $	date		Credit amount $
Oct 1	Opening Balance	$ 208,400	Oct	cash Account (collections from customers during october )	$ 298,500
Oct	Fees revenue account ( balancing amount ) ( fees billed to customer during october )	$ 215,400	31 Oct	Ending Balance	$ 125,300
		$4,23,800			$ 423,800

2.

Corrective journal entry for transaction recording the purchase of office supplies when it was really office equipment:

Date	Particulars	Debit amount	Credit Amount
Nov 30	Office Equipment account Debit	$ 550
	To Office Supplies Account		$ 550

Explanation:

• When the wrong entry was passed, office supplies were debited instead of Office equipment.
• So now corrective entry passed , Debiting the correct account i.e. office equipment account , and crediting the Office supplies account to cancel the wrong debit record.

3.

no.	accounts	Entries	Balances	Explanation
1.	Fees Earned	both debit and credit	Debit	Fees earned is the amount for services rendered, not yet received in cash from customer. Initially recorded as debit when services rendered on account . credited when the cash is received from customer.
2.	Supplies	debit entries only	Debit	this is an expense account. debited whenever supplies are purchased.
3.	Utilities Expense	debit entries only	Debit	this is an expense account. debited whenever utilities expenses are incurred.
4.	Cash	both debit and credit	Debit	whenever cash is received it is debited , and whenever cash is paid it is credited. based on accoutning rule. Debit what comes in, credit what goes out.
5.	Accounts Payable	both debit and credit	Credit	When Goods are purchased on credit, Accounts payable is credited. When payment is made, it is debited.
6.	Accounts Receivable	both debit and credit	Debit	When Goods are sold on credit, Accounts receivable is credited. When payment is received, it is credited.

4.

journal entries in books of jumpstart co. for dec month.

	Date	Particulars	Debit amount	Credit Amount
a.	Dec 1	Cash Account Debit	$ 2,800
		To Services Revenue		$ 2,800
		( Services rendered for cash )
b1	Dec 1	Accounts Receivable Debit	$ 2,800
		To Services Revenue		$ 2,800
		( Services rendered on account )
b2	Dec 30	Cash account Debit	$ 1,200
		To Accounts Receivable		$ 1,200
		( cash recieved from customer )

Finish.