To determine Record the journal entry for the transactions that are related to revenues. Explanation Revenue: The account which is to be credited when a company receives donated assets is the revenue account. The rationale behind crediting revenue account is that the company renders service to the person who has donated the assets to the company in exchange of the assets received by it. Journalize the given transactions: a. Record the journal entry for collection of cash from customers for games played in July. Date Accounts title and explanation Ref. Debit ($) Credit ($) Cash (+A) 15,000 Games revenue (+SE) (+R) 15,000 (To record the collection of cash from customer for games played) Table (1) Cash is an asset. There is an increase in the asset. Hence, debit cash account with $15,000. Games revenue is a revenue account which is a component of stockholders’ equity. There is an increase in the revenue account which increases the stockholders’ equity. Hence, credit games revenue with $15,000. b. Record the journal entry for selling the bowling merchandise inventory for cash and account. Date Accounts title and explanation Ref. Debit ($) Credit ($) Cash (+A) 300 Accounts receivable (+A) 500 Sales revenue (+SE) (+R) 800 (To record the selling the bowling merchandise inventory for cash and account) Table (2) Cash is an asset. There is an increase in the asset. Hence, debit cash account with $300...

10th Edition

ISBN: 9781260481563

Author: Libby, Robert

Publisher: MCGRAW-HILL HIGHER EDUCATION

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Chapter 3, Problem 5ME

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Record the journal entry for the transactions that are related to revenues.

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Financial Accounting

Ch. 3 - Prob. 1Q Ch. 3 - Prob. 2Q Ch. 3 - 3. Write the income statement equation and define...Ch. 3 - Prob. 4Q Ch. 3 - 5. Define accrual accounting and contrast it with...Ch. 3 - 6. What criteria must normally be met for revenue...Ch. 3 - Prob. 7Q Ch. 3 - 8. Explain why stockholders’ equity is increased...Ch. 3 - 9. Explain why revenues are recorded as credits...Ch. 3 - 10. Complete the following matrix by entering...

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