Explanation 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. The journal entry which College B should use to record the receipt of the student’s tuition payments received in advance of the classes is as follows: Date Description PostRef. Debit ($) Credit ($) Cash XXX Unearned tuition deposits XXX (To record the receipt of the student’s tuition payments received in advance) Table (1) In recording the receipt of the student’s tuition payments received in advance, the following effects have taken place: Cash is an asset account, and it is increased...

15th Edition

ISBN: 9781337272124

Author: Carl Warren, James M. Reeve, Jonathan Duchac

Publisher: Cengage Learning

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Chapter 2, Problem 5CP

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Identify the journal entry which College B would use to record the receipt of the student’s tuition payments.

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Identify the journal entry which College B would use to record the receipt of the student’s tuition payments.

Solution Summary: The author identifies the journal entry which College B would use to record the receipt of the student’s tuition payments.

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Identify the journal entry which College B would use to record the receipt of the student’s tuition payments.

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