B-02.08 Problem

B-02.08 Problem - Transaction #2 Supplies were purchased...

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B-02.08 The following narratives describe transactions impacting cash, accounts receivable, accounts payable, revenues, and selected expense accounts. Use T-accounts to analyze this activity and determine the ending balances for accounts receivable and accounts payable. At the beginning of the period, accounts receivable totaled $54,300, while accounts payable totaled $31,275. The company started the period with $85,000 in cash. Transaction #1 Services were provided to customers for cash in the amount of $15,230.
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Unformatted text preview: Transaction #2 Supplies were purchased and used. This purchase occurred on account, in the amount of $2,400. Transaction #3 Collections of outstanding receivables occurred in the amount of $19,410. Transaction #4 Utilities costs in the amount of $763 were incurred and paid in cash. Transaction #5 Payments on outstanding accounts payable were made for $23,900. Transaction #6 Services were provided to customers on account in the amount of $48,654....
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