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-   -   Journal entry (https://www.askmehelpdesk.com/showthread.php?t=315181)

  • Feb 9, 2009, 10:08 AM
    mjacobson86
    Journal entry
    How would you put this entry?

    Jim Bob Grocery Store paid Eric $1,800 in advance for six months of cleaning services to be performed monthly, at the end of every month. The monthly charge to Jim Bob Grocery is $300.

    This is what I have, please let me know what you think.

    Cash $1,800
    Unearned Revenue $1,800
  • Feb 9, 2009, 10:59 AM
    codyman144

    Looks right if you are doing the entry for Eric.

    Please post these in homework help:


    Finance & Accounting - Ask Me Help Desk
  • Feb 9, 2009, 06:41 PM
    pready

    The correct entry is:
    Debit Prepaid Cleaning service Expense (or appropriate Prepaid expense account) for the amount
    Credit cash for the amount (cash paid)

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