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

See similar textbooks

Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

Videos

Question

Chapter 3, Problem 5ME

To determine

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

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 3, Problem 4ME

Chapter 3, Problem 6ME

Students have asked these similar questions

What was the balance in interest payable on the 2021 balance sheet for this financial accounting question?

What amount of interest has accrued as of August 31, 2022 on these financial accounting question?

Please give me true answer this financial accounting question

Chapter 3 Solutions

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...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education