25 Laundry services were performed for customers who paid immediately, $ 22,000. 20 Collected cash of $ 4,500 from customers on account (see March 12 entry). 12 Performed delivery services for customers who promised to pay $ 27,000 at a later date. There is an increase in an asset account (Furniture and Fixtures) in exchange for a decrease in another asset (Cash). Provided services to customers for the amount of $19,000, the customers will pay in 30 days.
SHORT ANSWER QUESTIONS, EXERCISES AND PROBLEMS
Received a $100 utility bill for this month.j. A. Amounts owed from the customer is accounts receivable. how to choose the right payroll software for your business Cash is increased (debit) and accounts receivable is decreased (credit); both are assets.
Journal Entry for Accrued Income
The term “outstanding expenses” refers to expenses that are unpaid after their due date. It may be possible to receive discounts from suppliers in certain situations for e.g. if a firm purchases in bulk or in case of early payment. Free samples or donations made to charity are treated as an advertising expense by the business. Example – Max Withdrew 1,000 in cash for personal use from his business. Drawings are personal withdrawals made by the owner and act as a reduction in the owner’s capital.
- 10 Purchased a new office desk on account, $ 1,050.
- 29 Paid the equipment repair bill received on the 19th, $ 225.
- The journal book must record every business transaction, which means entries need to be made.
- This will result in a compound journal entry.
- Prepare the journal entries required to record these transactions in the general journal of the company.
Introduction to Accounting
Prepaid insurance is an asset and assets increase with a debit. (g) On 27 April 2023, Goods worth ₹3,00,000 were destroyed by fire, and the insurance company paid a claim for 60% amount. Pass the necessary journal entries related to the following transactions in the book of R.K. When a customer fails to repay the amount owed it is known as a bad debt. It is an expense/loss for the business.
15 Collected cash from customers on account, $ 75,000. 15 Purchased trucks for $ 150,000, paying $ 120,000 cash and giving a 60-day note to the dealer for $ 30,000. July 1 The company issued $ 600,000 of capital stock for cash.
Financial Accounting
A. Record journal entries for the above transactionsB. Make a “T” account for the cash account, record the entries, and balance the cash account. B. Owing a supplier is called accounts payable. B. A credit to a liability account is an increase. An increase to a liability occurs when the company borrows to purchase an asset and pays later. Repaying a liability is a debit to the liability (d.) (a. & c.) do not impact a liability.
B. Accumulated depreciation is always recorded as a credit when depreciation expense is incurred (debit). Depreciation expense is recorded when a long term asset is used. Depreciation expense is not paid since the cash was paid when the long-term asset was purchased. Supplies is a current asset and does not depreciate, they are used. This will result in a compound journal entry. Record journal entries for the following transactions.
Prepare a corrected trial balance as of 2010 December 31. Also, write a description of the effect(s) of each error. The balance of $ 12,000 in the Advertising Expense account was entered as $ 1,200 in the trial balance. 6 Purchased delivery trucks for $ 280,000; payment was made by giving cash of $ 150,000 and a 30-day note for the remainder. 23 A note was arranged with the bank for $ 80,000.