Record the following selected transactions for January in a two‐column journal. Once you have completed that, answer questions 1 – 5 related to your work.

(a) Earned $7,000 fees; customer will pay later.

(b) Purchased equipment for $45,000, paying $20,000 in cash and the remainder on credit

(c) Paid $3,000 for rent for January.

(d) Purchased $2,500 of supplies on account.

(e) A. Allen $1,000 investment in the company.

(f) Received $7,000 in cash for fees earned previously.

(g) Paid $1,200 to creditors on account.

(h) Paid wages of $6,250.

(i) Received $7,150 from customers on account.

(j) A. Allen withdrawal of $1,750.



4. For part (j), which accounts are affected?
Question 4 options:

Supplies, Allen, Capital and Cash

Accounts Receivable and Cash

Cash and Accounts Receivable

Allen, Withdrawal and Cash