This preview shows page 1. Sign up to view the full content.
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
1000 Post to the general ledger: Accounts Receivable Service Revenues
2/9 1,000 2/9 1000 W
OW February 10: Mailed client from 2/3 the estate income tax return.
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
Service revenues 8. Cr. 300 Post to the general ledger: Unearned Revenues
2/10 300 300 2/3 Service Revenues
View Full Document