I\'m trying to finish up my general journal and am uncertain on a few of these.
ID: 2422921 • Letter: I
Question
I'm trying to finish up my general journal and am uncertain on a few of these.
1. July 21. Pay the employees 6850 for work performed during the 3rd week of july.
Debit Wages expense for 6850, credit cash 6850?
2. July 23. Receive a 48250 advance payment from the university. The advance payment is for 6 months of work which will be performed from august 1 2015 to january 31 2016.
Debit cash and credit accounts receivable??? Not sure on this one.
3. July 25. Complete a special mowing job for the golf course. Total price for job is 12,000, the golf course pays 6,000 cash on this date and will pay the remainder on august 25.
This one should have four entry's? Debit cash 6,000, Debit Acc receivable 6,000, credit service revenue 12,000??? Not sure here.
4. July 27, complete mowing job for customer. Customer pays $425 cash.
Debit cash 425, credit service revenue 425?
5. July 28. Pay employees 6350 for work performed during fourth week of july.
Debit Wages expense 6,350, credit cash 6,350?
6. July 31. Invoice the property management company $42,500 for july mowing work. The property management company will pay the invoice on the 20th of the next month.
Debit accounts receivable 42,500, credit unearned revenue??? This seems wrong to me, but I'm not sure why.
7. July 31. Pay the cash dividend that was declared on July 5. Cash dividend was for 27,000.
I think I'm supposed to debit dividends payable and credit cash?
All help is greatly appreciated. Thanks.
Explanation / Answer
1. July 21, Debit Wages expense for 6850, credit cash 6850.
2. July 23, Debit cash and credit unearned revenue 48250
Unearned revenue = cash received in advance for which service to be provided in future
3. July 25, Debit cash 6,000, Debit Acc receivable 6,000, credit service revenue 12,000
4. July 27, Debit cash 425, credit service revenue 425
5. July 28, Debit Wages expense 6,350, credit cash 6,350
6. July 31, Debit accounts receivable 42,500, credit service revenue 42,500
7.July 31 , debit dividends payable and credit cash