Question
Hii I need Help with some questions. Please Help me with this question and please give me correct answers and not the wrong answer. Some
Hii I need Help with some questions. Please Help me with this question and please give me correct answers and not the wrong answer. Some transactions goes in General journal or in Cash receipts Journal. Please When you post the transactions then please tell on top what journal you recorded the amount. Also please write clean so i can see. Don`t do the subsidiary ledger or General ledger i will do those ones. And if the transactions are purchase journal, Sales Journal, cash payments Journal or any kind of journal except for cash receipts then put those entities in General journal. Because for my project they only provide general journal and cash receipts Journal. That's Why. And when you record transactions in general journal then please include for example to record supplies purchased on account. Thank you
I think the First transaction goes in cash recipts journal There are 2 entities that need to be recorded in cash receipts Journal. Please read the instructions Carefully its very tricky.
Monday, December 5, 20XX
- Wayne Shriver and Ian met today to discuss making custom dining room, living room, and bedroom sets. The contract amount is for $28,500.00 (including sales tax), to be delivered by the end of the month (December 31). Contracts are kept by Ian. Wayne gave Ian Check No. 10178 in the amount of $14,250.00 (Form 6) for the 50% down payment, with the remainder to be paid in full upon delivery. This will be Job #132 for reference purposes. The down payment will be used to cover the purchase of the materials needed. The down payment, even though it's not the full amount of the sale, will be recognized as revenue with a journal entry. (If the final payment isn't received, the furniture won't be delivered and the furniture will then become merchandise inventory.)
- Note:This transaction can be difficult to figure out what journal entry(s) need to be made. The best way to think about it is two-fold. First, think about making a journal entry for the sale. Do not be concerned about the cash. Make the journal entry for the sale on account. Then make a journal entry for the receipt of the cash and apply it against the account. After the receipt of the cash, there's still a balance owed left on the account. This is why it's easier to think of this transaction by making two journal entries instead of combining them into one. This is no different than, as an example, someone buying a sweater for $100 on account. Then two weeks later that customer sends a partial payment for $30 in the mail. In thinking about the Wayne Shriver transaction, a journal entry is made for the sale on account, with the only difference being that instead of two weeks later receiving a partial payment, the "deposit" is the partial payment and is being received almost immediately instead if two weeks later in the mail.
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