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-   -   Journal entry on service revenue (https://www.askmehelpdesk.com/showthread.php?t=144631)

  • Oct 24, 2007, 08:43 PM
    wonder168woman
    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?
  • Oct 25, 2007, 09:09 AM
    CaptainForest
    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

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