Geo Inc.had the following account balances on January 1,Year 2:

During January,Year 2,Geo entered into the following transactions:
A.Paid $689 on account for utilities that were used during December Year 1.
B.Purchased $423 of supplies for cash.
C.Signed a rental agreement for office space and paid $3,500 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 $26,000 of services.$17,000 was received in cash and $9,000 was provided on credit.
F.Paid workers $8,300 for work done in January.
Required:
Part a.Prepare journal entries to record the transactions identified among activities (A)through (
F). Part b.Set up T-accounts for Cash,Accounts Receivable,Supplies,Prepaid Rent,Equipment,Accounts Payable,Note Payable,Common Stock,Retained Earnings,Service Revenue,and Salaries and Wages Expense.The beginning balance in each T-account should be the amount shown in the list of account balances above or $0 if the account does not appear above.Then,summarize the effects of each transaction in the appropriate T-accounts. Part c.After posting the journal entries to the T-accounts,compute ending balances for each of the T-accounts.

Question

Geo Inc.had the following account balances on January 1,Year 2:
  
During January,Year 2,Geo entered into the following transactions:
A.Paid $689 on account for utilities that were used during December Year 1.
B.Purchased $423 of supplies for cash.
C.Signed a rental agreement for office space and paid $3,500 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 $26,000 of services.$17,000 was received in cash and $9,000 was provided on credit.
F.Paid workers $8,300 for work done in January.
Required:
Part a.Prepare journal entries to record the transactions identified among activities (A)through (
F). Part b.Set up T-accounts for Cash,Accounts Receivable,Supplies,Prepaid Rent,Equipment,Accounts Payable,Note Payable,Common Stock,Retained Earnings,Service Revenue,and Salaries and Wages Expense.The beginning balance in each T-account should be the amount shown in the list of account balances above or $0 if the account does not appear above.Then,summarize the effects of each transaction in the appropriate T-accounts. Part c.After posting the journal entries to the T-accounts,compute ending balances for each of the T-accounts.

Quizplus · Accepted Answer

The Answer of Geo Inc.had the following account balances on January 1,Year 2:
  
During January,Year 2,Geo entered into the following transactions:
A.Paid $689 on account for utilities that were used during December Year 1.
B.Purchased $423 of supplies for cash.
C.Signed a rental agreement for office space and paid $3,500 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 $26,000 of services.$17,000 was received in cash and $9,000 was provided on credit.
F.Paid workers $8,300 for work done in January.
Required:
Part a.Prepare journal entries to record the transactions identified among activities (A)through (
F). Part b.Set up T-accounts for Cash,Accounts Receivable,Supplies,Prepaid Rent,Equipment,Accounts Payable,Note Payable,Common Stock,Retained Earnings,Service Revenue,and Salaries and Wages Expense.The beginning balance in each T-account should be the amount shown in the list of account balances above or $0 if the account does not appear above.Then,summarize the effects of each transaction in the appropriate T-accounts. Part c.After posting the journal entries to the T-accounts,compute ending balances for each of the T-accounts.

Geo IncHad the Following Account Balances on January 1,Year 2