Chapter 2, Problem 2.5CP

To determine

Journal:

Journal is the book of original entry. Journal consists of the day today financial transactions in a chronological order. The journal has two aspects; they are debit aspect and the credit aspect.

Rules of Debit and Credit

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

• Debit, all increase in assets, expense, dividends, and owner’s drawing accounts, and all decrease in liabilities, revenues and owner’s capital accounts.
• Credit, all increase in liabilities, revenues, and owner’s capital accounts, and all decrease in assets, expenses, and owner’s drawing account.

To identify: The journal entry which College B would use to record the receipt of the student’s tuition payments.