If the payment had been for services to be provided in December the credit

If the payment had been for services to be provided

This preview shows page 13 - 16 out of 48 pages.

will have to be refunded. If the paymenthad been for services to be provided in December , the credit would have been toService Revenue.Transaction 7 Dec. 15 Performed training services for a customer for cash, $5,000General JournalPage 1DateAccount Titles and ExplanationsPost Ref.DebitCredit2005Dec15Cash1005,000 Service Revenue4005,000 To record the receipt of cash for performing training services for a customerCashAn asset, cash, increases (debited); and a revenue, increases (credited) by $5,000.50,00040,0004,500Dec 12,400Dec155,000Dec 1 1,200Service Revenue2005Dec-055,000Transaction 8: Dec. 17 Paid the $1,400 accounts payable resulting from the transaction of December 4.General JournalPage 12005Dec 1 BalDec 7 Acct 1002005Dec 1 Acct 2162005Dec 1 BalDec 7 Acct 1002005Dec 1 Acct 216
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DateAccount Titles and ExplanationsPost Ref.DebitCredit2005Dec17Accounts Payable2001,400 Cash1001,400 To record the payment arising from the purchase of supplies on December 4.CashAn asset, cash, increases (debited); and a revenue, increases (credited) by $5,000.50,00040,0004,500Dec 12,400Dec155,000Dec 1 1,200A liability, accounts payable, decreasesDec 17 1,400(debited); and an asset, cash, decreases (credited) by $1,400.Accounts Payable20051,400Dec-051,400Transaction 9: Dec 20 Billed a customer for training services performed, $5,700.General JournalPage 1DateAccount Titles and ExplanationsPost Ref.DebitCredit2005Dec20Accounts Receivable1035,700 Service Revenue4005,700 To record the performance of training services on account for which a customer was billed. Accounts ReceivableAn asset, accounts receivable, increases5,700(debited); and a revenue, service revenueincreases (credited) by $5,700.Service Revenue2005Dec-055,000205,700Transaction 10: Dec 24 Received a bill for advertising that appeared in a local newspaper in December, $50DateAccount Titles and ExplanationsPost Ref.DebitCredit2005Dec24Advertising Expense50550 Accounts Payable20050 2005Dec 1 BalDec 7 Acct 1002005Dec 1 Acct 2002005Dec 17 2005Dec 20Acct 103Acct 400
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Received a bill for advertising for the month of DecemberAdvertising ExpenseAn expense, advertising expense, increases(debited); and a liability, accounts payable50increases (credited) by $50. The reason fordebiting an expense rather than an asset isbecause all the cost pertains to the currentAccounts Payableaccounting period, the month of December.2005Otherwise, Prepaid Advertising (an asset)1,400Dec-051,400would have been debited.24-Dec50Transaction 11: Dec 26 Received $500 on accounts receivable from a customerDateAccount Titles and ExplanationsPost Ref.DebitCredit2005Dec26Cash100500 Accounts Receivable103500 Received $500 from a customer on accounts receivableCashOne asset cash, is increased (debited); and50,00040,000another asset, accounts receivable, 4,500Dec 12,400decreases (credited) by $500.Dec155,000Dec 1 1,200Dec26500Dec 17 1,400Accounts Receivable20055,70026-Dec500Transaction 12: Paid salaries of $3,600 to training personnel for the first four weeks of December.
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