Elk Company accepted credit cards in payment for ($ 3,000) of services performed during July 2012. The

Question:

Elk Company accepted credit cards in payment for $\$ 3,000$ of services performed during July 2012. The credit card company charged Elk a 4 percent service fee; it paid Elk as soon as it received the invoices.

Required

a. Prepare the general journal entry to record the service revenue.

b. Prepare the general journal entry for the collection of the receivable from the credit card company.

c. Based on this information alone, what is the amount of net income earned during the month of July?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamental Financial Accounting Concepts

ISBN: 978-0073527123

7th Edition

Authors: Thomas Edmonds

See More Books

Question Posted: May 16, 2024 02:02 AM

See More Questions

Baucom Company accepted credit cards in payment for $\$ 6,850$ of services performed during March 2011. The credit card company charged Baucom a 4 percent service fee. The credit card company paid...
Camp Company accepted credit cards in payment for $4,000 of services performed during July 2013. The credit card company charged Camp a 4 percent service fee; it paid Camp as soon as it received the...
Luna Company accepted credit cards in payment for $6,000 of services performed during July 2016. The credit card company charged Luna a 4 percent service fee; it paid Luna as soon as it received the...
The annual consumption of beef per person was about 64 7 lb in 2000 and about 60 3 lb in 2007 Assume B(t), the annual beef consumption t years after 2000, is decreasing according to the exponential...
Glotyne Corporation is considering modernizing one of its manufacturing plants. Two choices are being considered: (a) Replace all worn and obsolete machinery with modern machinery that uses...
Identify the hedge fund service providers that most commonly run the risk of being susceptible to performing inadequate due diligence.
The accounting principle that prescribes accounting information be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in...
Here are some accounting reporting situations. (a) Dorfner Company recognizes revenue at the end of the production cycle but before sale. The price of the product, as well as the amount that can be...
Explain the financial and non-financial benefits of the change in adding a community center. Cite resource.
The following post-closing trial balance was drawn from the accounts of Millers Metal Co. (MMC) as of December 31, 2011. Transactions for 2012 1. MMC acquired an additional $\$ 4,000$ cash from the...
Super Day Spa provided $\$ 120,000$ of services during 2012. All customers paid for the services with credit cards. Super submitted the credit card receipts to the credit card company immediately....
The mean hourly wage for employees in goods-producing industries is currently $24.57 (Bureau of Labor Statistics website, April, 12, 2012). Suppose we take a sample of employees from the...
Jan 1 st: issued 7 0 0 0 shares of 1 0 0 $ present value, 4 % preferred stock at par Jan 2 nd: Declared a 2 : 1 stock split on the common Feb 1 st: issued 6 0 0 0 shares of common stock for equipment...
Humble Lions Football Club has 6 0 members. Twenty are non - playing members, paying an annual subscription of $ 1 0 0 0 0 . The remaining 4 0 members are active playing members. For 2 0 2 4 , the...
Newburg Company started 2 0 2 3 with 4 0 , 0 0 0 outstanding shares of common stock. On 2 / 1 / 2 3 , it issued an additional 1 0 , 0 0 0 shares and bought back 1 5 , 0 0 0 shares on 9 / 3 0 / 2 3 ....
Mario, who is single and elects to itemize, rents his mountain house for 2 1 0 days and uses it for personal use for 2 5 days during the year, not a leap year. Income and expenses associated with the...
Cool Kids Ltd has annual turnover of 8 4 , 9 0 0 . 8 5 % of the sales are standard rated and 1 5 % are zero rated. Standard rated expenses are 1 4 , 1 0 0 . All figures are exclusive of VAT. The...
Air is heated from 540 R to 640 R at V = C. Find 1q2? What if from 2400 to 2500 R?
On 1 July 2018, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $2,057,000. At this date, the equity of Son Ltd consisted of: $ 1,000,000 Share capital 500 000 shares...
. Create a new file ex2 and enter the following into the file. Mary Jack Alice What was the command used for creating the file? Display the content of the file ex2. .Append the following to the file...
Do you believe the death penalty is needed? why Do you feel the death penalty should remain or be abolished? why
Question 2 Mr N is a panel beater, who is running his own business. However, he is doing business illegally as he does not have the required licence to conduct his business. A year ago, Mr N died due...

Elk Company accepted credit cards in payment for ($ 3,000) of services performed during July 2012. The

Question:

Step by Step Answer:

Fundamental Financial Accounting Concepts

Students also viewed these Business questions