Explanation Journalizing: Journalizing is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the accounts are posted to the relevant ledger accounts. Accounting rules for journal entries: To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains. To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains. Recording unearned income: Date Account Title and Explanation Post Ref. Debit($) Credit($) February, 1 Cash 28,400 Unearned sales revenue 28,400 (to record unearned income) Table (1) Since cash is an asset, asset is increased. Hence, cash account is debited. Since unearned sales revenue is a liability, liability is increased. Hence, unearned sales revenue account is credited. Recording rent expense: Date Account Title and Explanation Post Ref. Debit($) Credit($) February, 1 Rent expense 800 Cash 800 (to record rent expense) Table (2) Since rent expense is an expense, expense is increased. Hence, rent expense account is debited. Since cash is an asset, asset is decreased. Hence, cash account is credited. Recording repayament of liability: Date Account Title and Explanation Post Ref. Debit($) Credit($) February, 2 Accounts payable 1,500 Cash 1,500 (to record repayment of liability) Table (3) Since account payable is a liability, liability is decreased. Hence, accounts payable account is debited. Since cash is an asset, asset is decreased. Hence, cash account is credited. Recording prepaid rent: Date Account Title and Explanation Post Ref. Debit($) Credit($) February, 6 Prepaid rent 30,150 Cash 30,150 (to record prepaid rent) Table (4) Since prepaid rent is an asset, asset is increased. Hence, prepaid rent expense account is debited. Since cash is an asset, asset is decreased. Hence, cash account is credited. Recording revenue of privious period: Date Account Title and Explanation Post Ref. Debit($) Credit($) February, 9 Cash 325 Accounts receivable 325 (to record income of previous period) Table (5) Since cash is an asset, asset is increased. Hence, cash account is debited. Since accounts receivable is an asset, asset is decreased. Hence, accounts receivable account is credited. Recording purchase of supplies: Date Account Title and Explanation Post Ref. Debit($) Credit($) February, 12 Supplies 475 Accounts payable 475 (to record purchase of supplies) Table (6) Since supplies is an asset, asset is increased...

4th Edition

ISBN: 9781337690881

Author: Jay Rich, Jeff Jones

Publisher: Cengage Learning

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Chapter 3, Problem 81.1C

To determine

To prepare: Journal entries. Also, provide analysis of the entries recorded.

Introduction: Journal entries provide a record of the financial activities undertaken within an organization. Journal entries helps in preparation of financial statements of a company.

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Chapter 3, Problem 80.4C

Chapter 3, Problem 81.2C

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Current Attempt in Progress You have been asked to help the local commercial radio station prepare its business plan for the upcoming year. The radio station operates for 18 hours a day (6 a.m. to midnight) seven days a week, all year. It broadcasts on average 15 minutes of on-air advertising per hour. To sell the advertising time, the station uses commissioned sales staff who are paid a base salary plus commission that varies according to the volume of sales. The station manager asks you to calculate how many hours of advertising it would need to sell in order to break even. (a) Select the fixed costs and the variable costs. Rent • Utilities (heat, light, water) Property and business taxes Management salaries and benefits Marketing costs for the station • Sales force base salaries Costs of production of on-air commercial • Advertising sales commission

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Chapter 3 Solutions

Cornerstones of Financial Accounting

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Journal entries . Also, provide analysis of the entries recorded. Introduction: Journal entries provide a record of the financial activities undertaken within an organization. Journal entries helps in preparation of financial statements of a company.

Solution Summary: The author explains journalizing as the process of recording the transactions of an organization in a chronological order.

To prepare: Journal entries. Also, provide analysis of the entries recorded.

Introduction: Journal entries provide a record of the financial activities undertaken within an organization. Journal entries helps in preparation of financial statements of a company.

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Chapter 3 Solutions

Journal entries . Also, provide analysis of the entries recorded. Introduction: Journal entries provide a record of the financial activities undertaken within an organization. Journal entries helps in preparation of financial statements of a company.

Solution Summary: The author explains journalizing as the process of recording the transactions of an organization in a chronological order.

To prepare: Journal entries. Also, provide analysis of the entries recorded. Introduction: Journal entries provide a record of the financial activities undertaken within an organization. Journal entries helps in preparation of financial statements of a company.

Want to see the full answer?

Chapter 3 Solutions

To prepare: Journal entries. Also, provide analysis of the entries recorded.

Introduction: Journal entries provide a record of the financial activities undertaken within an organization. Journal entries helps in preparation of financial statements of a company.