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-   -   Is this is correct adjusting transaction please helllp (https://www.askmehelpdesk.com/showthread.php?t=492335)

  • Jul 27, 2010, 06:48 AM
    aahhmm
    Is this is correct adjusting transaction please helllp
    On November 30, a friend of Natalie’s asks her to teach a class at the neighborhood school.
    Natalie agrees and teaches a group of 35 first-grade students how to make Santa Claus
    Cookies.The next day, Natalie prepares an invoice for $250 and leaves it with the school principal.
    The principal says that he will pass the invoice along to the head office, and it will be
    Paid sometime in December'
    DR account receivable 250$
    CR teaching revenue 250"

    Natalie receives a cellphone bill for $45. She uses her cellphone only for business. The bill is
    For services provided during November and is due December 15
    DR unearned service revenue 45$
    CR service revenue 45$
    But the balance of the unearned service revenue is 25$
    What I have to do or is my transaction incorrect
  • Jul 27, 2010, 09:03 AM
    pready

    The cellphone bill will be:
    Debit an Expense account like Cellphone Expense or Telephone Expense Account and credit Accounts Payable for the amount
  • Jul 27, 2010, 09:07 AM
    aahhmm
    Quote:

    Originally Posted by pready View Post
    The cellphone bill will be:
    Debit an Expense account like Cellphone Expense or Telephone Expense Account and credit Accounts Payable for the amount

    Thanks a lot
    Can I say telepone payable account
  • Jul 27, 2010, 12:09 PM
    pready

    If you have a telephone payable account you can. You would need to look at the chart of accounts of the company to determine the names of the accounts or if this is homework the accounts should be listed in the problem.
  • Jul 30, 2010, 01:27 AM
    morgaine300

    As an added note, always think about whose side you're on. If Natalie receives a cell phone bill, how does that relate to revenue for her? She's not the cell phone company. She teaches cooking - teaching is her revenue. Services that she uses are expenses.

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