How do I journalize this on my manual form?
Sold DJ service on account to JJ's Dance Club, $500.00. S2.
Homework
You should:
*debit your accounts receivable for $500
*credit the appropriate revenue account for $500 (revenue accounts lie in the stockholder's equity portion of the balance sheet and makes up the net income)
To journalize the transaction on your manual form, you will need to follow these steps:
1. Identify the accounts involved: In this case, the accounts involved are "Accounts Receivable" (JJ's Dance Club) and "Sales Revenue" (DJ service).
2. Determine the debit and credit amounts: Since you sold the DJ service on account, the "Accounts Receivable" account will be debited, and the "Sales Revenue" account will be credited. The amount is $500.00.
3. Record the transaction in the journal: In your journal, record the transaction by entering the date, the accounts debited and credited, and the corresponding amounts. The format typically used is:
- Date: [Insert Date]
- Account Debited: Accounts Receivable
- Account Credited: Sales Revenue
- Amount: $500.00
4. Add any necessary additional information: The "S2" mentioned at the end of the transaction might refer to the source document or reference number associated with the sale. If applicable, you can include this information in a separate column on your manual form.
Following these steps, you will be able to accurately journalize the sale of the DJ service on account to JJ's Dance Club in your manual form.