Unformatted text preview: fee for this project had been received in advance. Date General Journal Debit Credit Dec. 31 Remodeling Fees Earned 11,130 Unearned Remodeling Fees 11,130 Worksheet Learning Objective: 03-P4 Lowes Construction began operations on December 1. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance. Prepare journal entries for items a through d and the adjusting entries as of its December 31 period-end for items e through g. (Omit the &quot;$&quot; sign in your response.) a. Supplies are purchased on December 1 for $2,000 cash. Date General Journal Debit Credit Dec. 1 Supplies Expense 2,000 Cash 2,000 b. The company prepaid its insurance premiums for $1,540 cash on December 2. Date General Journal Debit Credit Dec. 2 Insurance Expense 1,540 Cash 1,540...
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- Spring '10
- Expense, Double-entry bookkeeping system, 1983