Question

The following transactions took place for Xiu Xiu Company during June 2018: (a) Purchased equipment on account for $9,000. (b) Billed customers $5,000 for services performed. (c) Made payment of $2,300 on account for equipment purchased earlier in month. (d) Collected $2,900 on customer accounts.

Answer 1

Question Completion:

1. What is the balance in Accounts Payable at June 30, 2018?  Accounts Payable $

2. What is the balance in Accounts Receivable at June 30, 2018?

Answer:

Xiu Xiu Company

1. The balance in the Accounts Payable at June 30, 2018:

Accounts Payable $6,700

1. The balance in the Accounts Receivable at June 30, 2018:

Accounts Receivable $2,100

Explanation:

a) Data and Calculations:

Purchases on account =       $9,000

Payment on account =            2,300

Accounts Payable Balance = $6,700

Sales on account =                  $5,000

Receipt on account =                 2,900

Accounts Receivable balance $2,100