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Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615

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BuyFindarrow_forward

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615
Textbook Problem
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Journal entry for fees earned

Prepare a journal entry on August 13 for cash received for services rendered, $9,000.

To determine

Journal:

Journal is the book of original entry. Journal consists of the day today financial transactions in a chronological order. The journal has two aspects; they are debit aspect and the credit aspect.

Rules of Debit and Credit

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

  • Debit, all increase in assets, expense, dividends, and owner’s drawing accounts, and all decrease in liabilities, revenues and owner’s capital accounts.
  • Credit, all increase in liabilities, revenues, and owner’s capital accounts, and all decrease in assets, expenses, and owner’s drawing account.

To prepare: The journal entry to record the cash received for services rendered.

Explanation

Journalize the receipt of cash for the services rendered.

Date Description

Post.

Ref

Debit ($) Credit ($)
August 13 Cash   9,000  
    Fees earned     9,000
  (Received fees from customers)      

Table (1)

  • Cash is an asset account, and it is increased. Hence, debit the cash account for $9,000.
  • Fees earned are the revenue account, and they are increased. Hence, credit the fees earned account by $9,000...

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