journalize the earning of services $53,000 on account and then additional $45,000 in cash
Accounts & Explanations Debit Credit
Cash 45,000
Accounts Receivable 53,000
Service Revenue 98,000
98000
dafs
To journalize the earning of services $53,000 on account, you will need to credit the revenue account and debit the accounts receivable account. Here's how you can do it:
1. Identify the accounts involved:
- Revenue Account: This account represents the income generated from providing services.
- Accounts Receivable Account: This account records the amount owed to the company by its customers for services provided on credit.
2. Determine the journal entries:
- Debit the Accounts Receivable account to increase the amount owed to the company. Let's assume the account is called "Accounts Receivable."
- Credit the Revenue account to record the income earned from providing services. Let's say the account is called "Service Revenue."
3. Journalize the transactions:
Entry 1:
Date: [Date of the transaction]
Account Debit Credit
Accounts Receivable $53,000
Service Revenue $53,000
To journalize the additional $45,000 earned in cash, you will need to credit the revenue account and debit the cash account. Follow the steps below:
1. Identify the accounts involved:
- Revenue Account: This account represents the income generated from providing services.
- Cash Account: This account records the amount of cash the company receives.
2. Determine the journal entries:
- Debit the Cash account to record the cash received. Let's assume the account is called "Cash."
- Credit the Revenue account to record the income earned from providing services. Let's say the account is called "Service Revenue."
3. Journalize the transactions:
Entry 2:
Date: [Date of the transaction]
Account Debit Credit
Cash $45,000
Service Revenue $45,000
Remember to replace the account names used in this example with the actual account names your company uses. Double-checking with your company's accounting guidelines and consulting with an accountant is always recommended.