Financial Act Demonstration Problem #2

Did not receive cash yet rules increases to assets

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Unformatted text preview: Increases to assets are debited, and revenues are always credited. Journal entry: Debit to Accounts receivable (balance sheet), Credit to Service revenues (income statement). Feb 9 Accounts Receivable Service revenues 8. Dr. 1000 Cr. 1000 Post to the general ledger: Accounts Receivable Service Revenues 2/1 2,500 2/9 1,000 2/9 1000 W OW February 10: Mailed client from 2/3 the estate income tax return. 5. 6. 7. Transaction: Completed work for client that had been paid in advance. No longer have a liability to this customer because work has been performed (revenue has been earned). Rules: Decreases to liability accounts are debited, increases to revenue accounts are credited. Journal entry: Debit to Unearned Revenues (balance sheet), Credit to Service revenues (income statement) - Dr 2/10 Unearned revenues 300 Service revenues 8. Cr. 300 Post to the general ledger: Unearned Revenues 2/10 300 300 2/3 Service Revenues 2/1 2,500 2/9 1,000 2/10 300...
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This note was uploaded on 01/22/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida - Tampa.

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