Pinnacle Consulting Company makes most of its sales and purchases on credit. It uses the five journals described in this chapter (revenue, cash receipts, purchases, cash payments, and general journals). Identify the journal most likely used in recording the postings for selected transactions indicated by letter in the T accounts on the next page:
Cash Prepaid Rent
a. 10,940 b. 6,500 e. 1,200
Accounts Receivable Accounts Payable
c. 11,790 a. 10,940 b. 6,500 d. 7,400
Office Supplies Fees Earned
d. 7,400 c. 11,790
Rent Expense
e. 1,200
Answer:
Revenue journal: (c)
Cash receipts journal: (a)
Purchases journal: (d)
Cash payments journal: (b)
General journal: (e)
