Financial Act Demonstration Problem #2

Rules increases to assets are debited increases to

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: o assets are debited, increases to liabilities are credited. Journal entry: Debit to Cash, Credit to Unearned revenues (a liability account) Feb 3 Cash Unearned revenues 8. Dr. 300 Cr. 300 Post to the general ledger: Cash BB 7,800 2/1 750 2/1 2,500 2/3 300 Unearned Revenues 2/3 300 February 7: Paid administrative assistant for first week of work, $250. 5. 6. 7. Transaction: Paying wages to employee. Expenses have been incurred in February and paid in February. Rules: Increases to expense accounts are debited, and decreases to asset accounts are credited. Journal entry: Debit to Wages Expense (Income statement) and Credit to Cash (balance sheet). Jan 4 Wages Expense Cash 8. Dr. 250 Cr. 250 Post to the general ledger: Cash BB 7,800 2/1 750 2/1 2,500 2/7 250 2/3 300 Wages Expense 2/7 250 February 9: Prepared financial statement compilation for a client, $1,000. The compilation along with the invoice was mailed to the client today. 5. 6. 7. Transaction: Performed a service that has been earned. Did not receive cash yet. Rules:...
View Full Document

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.

Ask a homework question - tutors are online