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

question 231

Essay

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.

---

Definitions:

University Admissions

University admissions is the process through which students apply to and are selected for enrollment in a university or college, often based on academic merit, test scores, and other criteria.

African American

A term referring to Americans of African descent, particularly those whose ancestors were enslaved and brought to the United States.

Latino

A term used to describe people of Latin American origin or descent, often living in the United States.

Native American

Indigenous peoples of the Americas, including both American Indians and Alaska Natives.