Explanation MEMO FROM: XYZ TO: ABC Dated: 1 st December, 2014 Re: Explaining and illustrating the recording process Dear Sir, As you know any business transaction need to be analyzed to know the nature of the transaction, and to identify the account to be debited, and credited for recording process, similarly the transactions occurred in March 15 for billing the customer, and paying the employees should also go through the process before it is being recorded in journal, and ledger account of the Company CS. For first transaction of billing the customer for $6,000 for the home cleaning services, following process are followed; Basic Analysis: In this transaction Accounts receivable (asset) is increased, hence it should be debited for $6,000. Service revenue ( stockholders’ equity ) is also increased, and there by Stockholders’ equity is increased hence it should be credited for $6,000. Accounting Equation Analysis: [ Accounts receivables + ( Assets-$6,000 ) ] =liabilities+ [ Service revenue + ( Stockholders' equity-$6,000 ) ] Debit and Credit Analysis: In this transaction an asset (Accounts receivable) is increased, hence it should be debited $6,000, similarly the stockholders’ equity is increased hence it should be credited $6,000. Journal Entry : Date Account Title and Explanation Post Ref. Debit ($) Credit ($) Mar.15 Accounts Receivable 6,000 Service Revenue 6,000 (To record the billing customers for service rendered on account) Posting: Accounts Receivable Mar

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ISBN: 9781118162286

Author: Kimmel, Paul D.

Publisher: John Wiley & Sons Inc

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Financial Accounting

Ch. 3 - Prob. 1Q Ch. 3 - Can a business enter into a transaction that...Ch. 3 - Are the followingevents recorded in the accounting...Ch. 3 - Prob. 4Q Ch. 3 - Prob. 5Q Ch. 3 - Prob. 6Q Ch. 3 - Prob. 7Q Ch. 3 - Misty Reno, a beginning accounting student,...Ch. 3 - Prob. 9Q Ch. 3 - What is the normal balance for each of these...

Ch. 3 - Prob. 11Q Ch. 3 - Prob. 12Q Ch. 3 - Prob. 13Q Ch. 3 - Prob. 14Q Ch. 3 - Prob. 15Q Ch. 3 - (a) When entering a transaction in the journal,...Ch. 3 - (a) Should accounting transaction debits and...Ch. 3 - Journalize these accounting transactions. (a)...Ch. 3 - Prob. 19Q Ch. 3 - Prob. 20Q Ch. 3 - Prob. 21Q Ch. 3 - Prob. 22Q Ch. 3 - Prob. 3.1BE Ch. 3 - Prob. 3.2BE Ch. 3 - Prob. 3.3BE Ch. 3 - For each of the following accounts, indicate the...Ch. 3 - Prob. 3.5BE Ch. 3 - Prob. 3.6BE Ch. 3 - Prob. 3.7BE Ch. 3 - Tilton Corporation has the following transactions...Ch. 3 - Prob. 3.9BE Ch. 3 - Prob. 3.10BE Ch. 3 - Prob. 3.11BE Ch. 3 - Prob. 3.12BE Ch. 3 - Prob. 3.1DIR Ch. 3 - Prob. 3.2DIR Ch. 3 - Prob. 3.3DIR Ch. 3 - Prob. 3.4DIR Ch. 3 - E3-1 Selected transactions for Warner Advertising...Ch. 3 - E3-2 Manning Company entered into these...Ch. 3 - E3-3 During 2014, its first year of operations as...Ch. 3 - E3-4 A tabular analysis of the transactions made...Ch. 3 - Prob. 3.5E Ch. 3 - Prob. 3.6E Ch. 3 - Prob. 3.7E Ch. 3 - Prob. 3.8E Ch. 3 - Prob. 3.9E Ch. 3 - Prob. 3.10E Ch. 3 - E3-11 Selected transactions for Protheroe...Ch. 3 - Prob. 3.12E Ch. 3 - Prob. 3.13E Ch. 3 - Prob. 3.14E Ch. 3 - Prob. 3.15E Ch. 3 - Prob. 3.16E Ch. 3 - Prob. 3.17E Ch. 3 - Prob. 3.18E Ch. 3 - Prob. 3.19E Ch. 3 - Prob. 3.1AP Ch. 3 - P3-2A Nina Finzelberg started her own consulting...Ch. 3 - P3-3A Cindy Braun created a corporation providing...Ch. 3 - Prob. 3.4AP Ch. 3 - Prob. 3.5AP Ch. 3 - Prob. 3.6AP Ch. 3 - Prob. 3.7AP Ch. 3 - Prob. 3.8AP Ch. 3 - Prob. 3.1BP Ch. 3 - Prob. 3.2BP Ch. 3 - Prob. 3.9AP Ch. 3 - Prob. 3.4BP Ch. 3 - Prob. 3.5BP Ch. 3 - Prob. 3.6BP Ch. 3 - P3-7B This trial balance of Lindbergh Company does...Ch. 3 - P3-8B Roxy Theater Inc. was recently formed. All...Ch. 3 - P3-9B A first year co-op student working for...Ch. 3 - Prob. 3.1BYP Ch. 3 - Prob. 3.2BYP Ch. 3 - Prob. 3.4BYP Ch. 3 - RESEARCH CASE BYP3-3 The January 27, 2011, edition...Ch. 3 - Prob. 3.6BYP Ch. 3 - Prob. 3.7BYP Ch. 3 - Prob. 3.8BYP Ch. 3 - Prob. 3.10BYP Ch. 3 - Prob. 3.1IFRS

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