Question

Prepare the following journal entries in proper journal entry form. 1. Billed a customer for a $2,400 job. 2. Received $4,800 to start an eight-month job, beginning next month. 3. Started a company by contributing equipment worth $5,400, land worth $180,000 and cash of $30,000 into a business checking account.

Answer 1

Answer and Explanation:

The Journal entry is shown below:-

1. Accounts receivable Dr, $2,400

             To Service revenue $2,400

(Being services revenue is recorded)

Here we debited the accounts receivable as it increased the assets and we credited the service revenue as  it increased the revenue

2. Cash Dr, $4,800

               To Unearned revenue $4,800

(Being unearned revenue is recorded)

Here we debited the cash as it increased the assets and we credited the unearned revenue as  it increased the liabilities

3. Equipment Dr, $5,400

  Land Dr, $180,000

  Cash Dr, $30,000

                 To Capital $215,400

(Being assets investment is recorded)

Here we debited the equipment, land and cash as it increased the assets and we credited the capital as it increased the liabilities