If the payment had been for services to be provided

will have to be refunded. If the payment
had been for services to be provided in
December , the credit would have been to
Service Revenue.
Transaction 7 Dec. 15 Performed training services for a customer for cash, $5,000
General Journal Page 1
Date Account Titles and Explanations Post Ref. Debit Credit
2005
Dec 15 Cash 100 5,000
Service Revenue 400 5,000
To record the receipt of cash for performing training services for a customer
Cash An asset, cash, increases (debited); and a
revenue, increases (credited) by $5,000.
50,000 40,000
4,500 Dec 1 2,400
Dec 15 5,000 Dec 1 1,200
Service Revenue
2005
Dec-05 5,000
Transaction 8: Dec. 17 Paid the $1,400 accounts payable resulting from the transaction of December 4.
General Journal Page 1
2005
Dec 1 Bal
Dec 7
Acct 100
2005
Dec 1
Acct 216
2005
Dec 1 Bal
Dec 7
Acct 100
2005
Dec 1
Acct 216

Date Account Titles and Explanations Post Ref. Debit Credit
2005
Dec 17 Accounts Payable 200 1,400
Cash 100 1,400
To record the payment arising from the purchase of supplies on December 4.
Cash An asset, cash, increases (debited); and a
revenue, increases (credited) by $5,000.
50,000 40,000
4,500 Dec 1 2,400
Dec 15 5,000 Dec 1 1,200 A liability, accounts payable, decreases
Dec 17 1,400 (debited); and an asset, cash, decreases
(credited) by $1,400.
Accounts Payable
2005
1,400 Dec-05 1,400
Transaction 9: Dec 20 Billed a customer for training services performed, $5,700.
General Journal Page 1
Date Account Titles and Explanations Post Ref. Debit Credit
2005
Dec 20 Accounts Receivable 103 5,700
Service Revenue 400 5,700
To record the performance of training services on account for which a customer was billed.
Accounts Receivable
An asset, accounts receivable, increases
5,700 (debited); and a revenue, service revenue
increases (credited) by $5,700.
Service Revenue
2005
Dec-05 5,000
20 5,700
Transaction 10: Dec 24 Received a bill for advertising that appeared in a local newspaper in December, $50
Date Account Titles and Explanations Post Ref. Debit Credit
2005
Dec 24 Advertising Expense 505 50
Accounts Payable 200 50
2005
Dec 1 Bal
Dec 7
Acct 100
2005
Dec 1
Acct 200
2005
Dec 17
2005
Dec 20
Acct 103
Acct 400

Received a bill for advertising for the month of December
Advertising Expense An expense, advertising expense, increases
(debited); and a liability, accounts payable
50 increases (credited) by $50. The reason for
debiting an expense rather than an asset is
because all the cost pertains to the current
Accounts Payable accounting period, the month of December.
2005 Otherwise, Prepaid Advertising (an asset)
1,400 Dec-05 1,400 would have been debited.
24-Dec 50
Transaction 11: Dec 26 Received $500 on accounts receivable from a customer
Date Account Titles and Explanations Post Ref. Debit Credit
2005
Dec 26 Cash 100 500
Accounts Receivable 103 500
Received $500 from a customer on accounts receivable
Cash
One asset cash, is increased (debited); and
50,000 40,000 another asset, accounts receivable,
4,500 Dec 1 2,400 decreases (credited) by $500.
Dec 15 5,000 Dec 1 1,200
Dec 26 500 Dec 17 1,400
Accounts Receivable
2005
5,700 26-Dec 500
Transaction 12: Paid salaries of $3,600 to training personnel for the first four weeks of December.