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

    Nov 2, 2009, 08:10 AM
    Journal entry
    I would like to know if I enter this transaction correctly: Revenues earned during the month included $6,400 cash and $4,300 on account.

    Is this correct:

    Cash 6,400
    Account Receivable 4,300
    Capital 10,700
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    Nov 2, 2009, 10:54 PM

    No, the credit should be to revenues earned. You will have incurred expenses to generate that revenue which must be matched to obtain the net income
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 and adjusting entry [ 3 Answers ]

Hello: I am new to this site. I am coming across some difficulty with my assignment. If someone can please help me:confused: 1. On may 1st, there was a rent payment for may and June for 4500. THEN 2. I have an adjusting entry for a $1000 of unearned rent. Here is the confusing part to...

Journal Entry / Double-entry software needed [ 5 Answers ]

Hi, I am looking for a good software to use for daily journal entries and adjustments, that will allow me to create at least a balance sheet & income statement and perhaps a few reports (like inventory, accounts receivables). I need a real double-entry & simple reliable software. Peachtree &...

What do I debit/credit in journal entry/adjusting entry? [ 1 Answers ]

Hi. I am unsure about the correct way to debit/credit these entries. Can someone help me? Window Washing Company opened on July 1, 2010. During July the following transactions were completed: July 1 Issued 14,456 shares of common stock for $14,456 cash. July 1 Purchased used truck for...

Journal entry [ 1 Answers ]

How do I record the following JE - Deep sea fishing Dreams Inc. sold 50,000 shares of $5 par value common stock for $250,000.

View more questions Search