Payments made to MERALCO and MAYNILAD are P12,000 and P3,400, respectively. This liability is increasing, as the company now owes money to the supplier. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 112 Accounts Receivable, No. You will notice that the transactions from January 3, January 9, January 12, and January 14 are listed already in this T-account. A) Sandwich a pos citation tool such as, Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, Book title: Principles of Accounting, Volume 1: Financial Accounting. Accounts Receivable is an asset account. Hired a secretary-receptionist at a salary of $700 per week, DATE payable monthly. 729 Rent Cash is increasing, which increases total assets on the balance sheet. When a stored value card is redeemed at a licensed store location, we reduce the corresponding stored value card liability and cash, which is reimbursed to the licensee. Assets = liabilities + owner's equity Transaction 3: On January 9, 2019, receives $4,000 cash in advance from a customer for services not yet rendered. Cash is decreasing, so total assets will decrease by $100, impacting the balance sheet. Which transactions are recorded on the credit side of a journal entry? The more revenue you have, the more net income (earnings) you will have. Santos. Service Revenue has a credit balance of $2,800. then you must include on every digital page view the following attribution: Use the information below to generate a citation. Notice that for this entry, the rules for recording journal entries have been followed. At the end of the month, salaries of beauticians paid amounted to P30,000. How should you approach Kurt regarding his work? Emily Valley is a licensed dentist. Accounts Receivable has a credit of $5,500 (from the Jan. 10 transaction). Cash is an asset that decreases on the credit side. If you invested $10,000 in a mutual fund and the fund earned a 6% return for the year, it means you gained about $600, and your investment would be worth $10,600. Receipt No. 101 It increases because Printing Plus now has more equipment than it did before. A journal keeps a historical account of all recordable transactions with which the company has engaged. For example, Colfax might purchase food items in one large quantity at the beginning of each month, payable by the end of the month. Another example is a liability account, such as Accounts Payable, which increases on the credit side and decreases on the debit side. Revenue accounts increase with credit entries, so credit lawn-mowing revenue. Brenda Jo Smith Invested $20,000 in cash to start the business. Every transaction, A: Introduction: This is posted to the Unearned Revenue T-account on the credit side. This is placed on the debit side of the Salaries Expense T-account. We record this as an increase to the asset account Accounts Receivable and an increase to service revenue.
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