BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

JOURNALIZING CASH RECEIPTS Enter the following transactions in a general journal:

images

To determine

Journalize the transactions related to cash receipts.

Explanation

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

  • Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.
  • Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

Journalize the transactions related to cash receipts.

Transaction on July 6:

DateAccount Titles and ExplanationsPost. Ref.Debit ($)Credit ($)
July6Cash 643 
   Accounts Receivable, JA  643
  (Record cash received for sales on account)   

Table (1)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Accounts Receivable, JA is an asset account. Since amount to be received has decreased, asset account decreased, and a decrease in asset is credited.

Transaction on July 10:

DateAccount Titles and ExplanationsPost. Ref.Debit ($)Credit ($)
July10Cash 2,320 
   Sales  2,320
  (Record cash received from cash sales)   

Table (2)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Sales is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.

Transaction on July 14:

DateAccount Titles and ExplanationsPost. Ref.Debit ($)Credit ($)
July14Cash 430 
   Accounts Receivable, BH  430
  (Record cash received for sales on account)   

Table (3)

Description:

  • Cash is an asset account...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What are the two main causes of market failure? Give an example of each.

Principles of Microeconomics (MindTap Course List)

What is a user view?

Accounting Information Systems

YIELD TO CALL It is now January 1, 2014, and you are considering the purchase of an outstanding bond that was i...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Explain the concept of vesting.

PAYROLL ACCT.,2019 ED.(LL)-TEXT

Explain the difference between technical and allocative efficiency.

Cornerstones of Cost Management (Cornerstones Series)