Asked Nov 22, 2019

I need to know how to record this transaction in a general journal.

1/18 Received $8,000 the January telephone bill from At&t for $375, due Feb.15.

1/20 Received utility bills for January due Feb 16, from Swepco for $360 and Tx Water Utilities for $280.


Expert Answer

Step 1

The cash is received but the service for the same are not performed till date and this will result in the increase in the unearned revenue liability. In case of increase in liability, the related liability account should be credited. Hence, the unearned revenue is credited. 

The receipt of cash will also result in the increase in the cash balance of the company. In case of increase in the assets, the related asset account of the company should be debited. Hence, the cash account is debited.


Image Transcriptionclose

Dates Accounts, Title & Explanation Post ref. Debit(S) Credit(S) Cash Unearned revenue (To record the unearned |revemie) S 8,000 $ 8,000

Step 2

All the expenses is of debit nature when such expenses is incurred by the company. The telephone bill expenses is incurred during the period and thus it is debited.

The payment of telephone bill will r...


Image Transcriptionclose

Dates Accounts, Title & Explanation Post ref. Debit(S) Credit(S) Telephone expenses $375 $ 375 Cash (To record the payment of telephone expenses)


Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in



Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: Patterson Company operates three segments. Income statements for the segments imply that profitabili...

A: a) Prepare the schedule of relevant revenue and costs for Segment A:


Q: On April 1, 2017, Mills Company acquired equipment for $125,000. The estimated useful life is six ye...

A: 1. Under straight line method, depreciation is computed by the following formulaDepreciation under s...


Q: A plant asset with a five-year estimated useful life and no residual value is sold at the end of the...

A:  If the life of an asset is 5 year and no residual value its rate of depreciation for the first year...


Q: OWv2| Onlin X om/ilrn/takeAssignment/

A: Entry for May. 1


Q: HOMEWORK These were questions from a homework assignment.  I received a 4.5 out of 5.  The answers i...

A: Common stock or ordinary shares represents the amount due to the owners of the business and is issue...


Q: On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,521, Sherid...

A: Allowance for Doubtful Accounts:This is a contra asset account to the Accounts Receivables account t...


Q: *Question included in picture.

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any spec...


Q: Present Value of Bonds Payable; PremiumMoss Co. issued $42,000,000 of five-year, 11% bonds, with int...

A: Compute semi-annual interest payment on bonds as shown below: Semi-annual interest rate is 5.5% (11%...


Q: Optima Company is a high-technology organization that produces a mass-storage system. The design of ...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...