Ask Experts Questions for FREE Help !
Ask
    wonder168woman's Avatar
    wonder168woman Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Oct 24, 2007, 08:43 PM
    Journal entry on service revenue
    I have a question... how will I write this as a journal entry
    If Jan was starting her business on jan 1st and jan is only doing journal entries from jan 1st to jan 31st.

    Jan will receive a salary of $2,000 on both the first and fifteenth of each month. Payment on the fifteenth is for service to CSC from the first to fifteenth of the current month; pay on the first day of a month is for service in the prior month, from the sixteenth to the end of month, irrespective of the number of days.

    Would it be

    Debit credit
    Cash $2000
    Service revenue $2000??

    Or would it be $4000? Or a different number?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Oct 25, 2007, 09:09 AM
    A salary is not revenue to the business.

    On Jan 15, the JE would be:

    Dr. Wages Expense 2,000
    Cr. Cash 2,000

    On Jan 31, the JE would be:
    Dr. Wages Expense 2,000
    Cr. Wages PAYABLE 2,000

    It is wages payable as the payment does not occur until Feb 1 but it is for employment skills rendered to the business between Jan 16 and Jan 31
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Journal entry of sales tax with a service business [ 6 Answers ]

Hi, we have a small engine repair business. On the receipts there is the labor which I know is not taxable. Also there are parts we use to fix the engines that we city tax the customers for. I've been making my journal entries like this: Cash -debit, service revenue - credit, sales (these are the...

Journal entry [ 2 Answers ]

How do I journalize this: telephone expense for the month $350... it doesn't say if it was paid or not because the next journal entry is paid for utility bill $400, which would be to debit utility exp and credit cash but I don't know what to do with the telephone expense?

Journal entry [ 1 Answers ]

I'm having trouble with this journal entry.. "Investors invested $50,000 in the company." :rolleyes: Can someone please help? :)

Journal Entry [ 1 Answers ]

I have a Trial Balance for the 11 Months Ending 9/30/07 on one page, and on that trial balance Salries Payable has a credit ending balance of 18,610. Now I was given October Transactions and I have to Journalize them. On 10/01 The Company paid accrued salaries for the second half of September....

Journal Entry [ 1 Answers ]

To record supplies and equipment purchased for the month, the journal entry should be what?

View more questions Search