Sunland Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Pharoah Company employees. The total cruise package price to Pharoah Company employees is $76,000. Sunland Inc. receives a commission of 6% of the total price. Sunland Inc. therefore remits $71,440 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $76,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Sunland Inc. on this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. Cash Accounts Payable 2. Accounts Payable Commission Revenue Debit 76,000 Credit 4560
Sunland Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Pharoah Company employees. The total cruise package price to Pharoah Company employees is $76,000. Sunland Inc. receives a commission of 6% of the total price. Sunland Inc. therefore remits $71,440 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $76,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Sunland Inc. on this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. Cash Accounts Payable 2. Accounts Payable Commission Revenue Debit 76,000 Credit 4560
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sunland Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Pharoah Company employees. The total cruise package
price to Pharoah Company employees is $76,000. Sunland Inc. receives a commission of 6% of the total price. Sunland Inc. therefore
remits $71,440 to ShipAway.
Prepare the journal entry to record (1) the receipt of payment of $76,000 from employees for the cruise packages and (2) the
remittance and revenue recognized by Sunland Inc. on this transaction. (Credit account titles are automatically indented when amount is
entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries
before credit entries.)
No. Account Titles and Explanation
1.
Cash
Accounts Payable
2.
Accounts Payable
Commission Revenue
Debit
76,000
Credit
4560
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