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    mjacobson86's Avatar
    mjacobson86 Posts: 20, Reputation: 1
    New Member
    		  
    #1

    Feb 9, 2009, 10:08 AM
    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
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
    Senior Member
    		  
    #2

    Feb 9, 2009, 10:59 AM

    Looks right if you are doing the entry for Eric.

    Please post these in homework help:


    Finance & Accounting - Ask Me Help Desk
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #3

    Feb 9, 2009, 06:41 PM

    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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