Question

7 [The following information applies to the questions displayed below] At the beginning of Year 2 Oak Consulting had the following normal balances in its accounts: Account Cash Accounts receivable Accounts payable Common stock Retained earnings Balance $ 29,eee 19,300 14,eee 28, 2ee 14,100 Part 1 of 3 1.17 points The following events apply to Oak Consulting for Year 2: Skipped 1. Provided $67.700 of services on account. 2 Incurred $3,300 of operating expenses on account. 3. Collected $48.400 of accounts receivable. 4. Paid $39.200 cash for salaries expense. 5. Pald $15.570 cash as a partial payment on accounts payable. 6. Pald a $8,300 cash dividend to the stockholders. eBook Hint b&d. Post the beginning balances and the transactions from Parts a&d to the appropriate accounts. References Cash Accounts Receivable Beg Bal Beg Bal End. Bal End. Bal Accounts Payable Common Stock Beg Bal Beg Bal End. Bal End. Bal Retained Earnings Dividends Beg Bal Beg Bal End. Bal Bal Service Revenue Operating Expenses Beg. Bal Beg Bal End. Bal End. Bal Salaries Expense Beg Bal End. Bal

Answer 1

Answer as below:
First step is to populate the opening balance for Year 2 as provided in the question for respective ledger accounts
Transactions 1 to 6 is accounted in the ledger as below
1) Services on account for $67,700 will increase accounts receivable (Debit) and Increase the Service revenue account (Credit)
2) Operating expense on account of $3,300 will increase Operating expenses (Debit) and Increase the Accounts payable (Credit)
3) Collection of $48400 from accounts receivable will increase the cash account (Debit) and decrease the accounts receivable (Credit)
4) Payment of salaries in cash for $39200 will increase the Salaries expense (Debit) and decrease the cash (Credit)
5) Partial payment in cash for accounts payable for $15,570 will decrease accounts payable (Debit) and decrease the cash (Credit)
6) Paid cash dividend of $8300 will increase dividend account (Debit) and decrease the cash (Credit)

Cash		Accounts receivable
Beg. Bal	$        29,000				Beg. Bal	$ 19,300
3	$        48,400				1	$ 67,700
		$   39,200	4				$   48,400	3
		$   15,570	5
		$      8,300	6
End. Bal	$        14,330				End. Bal	$ 38,600
Accounts payable		Common stock
Beg. Bal		$   14,000			Beg. Bal		$   20,200
		$      3,300	2
5	$        15,570
End. Bal		$      1,730			End. Bal		$   20,200
Retained earnings		Dividends
Beg. Bal		$   14,100			Beg. Bal
					6	$    8,300
End. Bal		$   14,100			End. Bal	$    8,300
Service revenue		Operating expenses
Beg. Bal					Beg. Bal
		$   67,700	1		2	$    3,300
End. Bal		$   67,700			End. Bal	$    3,300
Salaries Expenses
Beg. Bal
	$        39,200
End. Bal	$        39,200