Question

The following transactions took place for Tanaka company in June: Purchased equipment on account for $9,800. Billed customers $5,600 for services performed. Made payment of $2,400 on account for equipment purchased earlier in month. Collected $3,900 on customer accounts. What are the Accounts Payable and Accounts Receivable balances at June 30, 2016

Answer 1

Answer: See explanation

Explanation:

The Accounts Payable balance would be calculated as:

Beginning balance = $9800

Less: Amount Paid = $2400

Account payable = $7400

The Accounts Receivable balances at June 30, 2016 would be:

Beginning balance = $5600

Less: Amount received = $3900

Account receivable balance = $1700