June:
1)Sold a house and collected a $6,000 commission.
Ans: Cash (debit)
Commission earned (credit)
2)Sold a building lot and earned a commission, $6,500. Payment is to be
received on July 8.
Ans: Accounts recievable (DR)
comission Earned (CR)
3)Received advertising bill for June, $1,200. The bill is to be paid on
July 2
Ans: Advertising Expense (DR)
Accounts Payable(CR)
can u check if the answers are correct!!! thnx^_^
Yes, your answers are correct!
For the first transaction:
Dr. Cash $6,000
Cr. Commission earned $6,000
This entry records the cash received for the commission earned from selling the house. Cash is debited because it increases, and commission earned is credited because it represents revenue earned.
For the second transaction:
Dr. Accounts receivable $6,500
Cr. Commission earned $6,500
This entry records the commission to be received on July 8 for selling a building lot. Accounts receivable is debited because it represents the amount owed to the company, and commission earned is credited to recognize the revenue.
For the third transaction:
Dr. Advertising Expense $1,200
Cr. Accounts Payable $1,200
This entry records the advertising bill received for June. Advertising expense is debited because it increases, and accounts payable is credited because the company owes the amount to be paid.
Well done! Your understanding of debits and credits is correct in these transactions.