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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Chapter
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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 November 1:

DateAccount Titles and ExplanationsPost. Ref.Debit ($)Credit ($)
November1Cash 750 
   Accounts Receivable, JH  750
  (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, JH is an asset account. Since amount to be received has decreased, asset account decreased, and a decrease in asset is credited.

Transaction on November 12:

DateAccount Titles and ExplanationsPost. Ref.Debit ($)Credit ($)
November12Cash 464 
   Accounts Receivable, MA  464
  (Record cash received for sales on account)   

Table (2)

Description:

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

Transaction on November 15:

DateAccount Titles and ExplanationsPost...

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