Jan. 3 Purchased goods from Sky Merchant Ltd. valued at Rs. 60,000 and paid for half of the amount by cheque, after a cash discount of 4%. Jan. 4 Purchased Office Equipment valued at Rs. 25,000 and Furniture and Fittings worth Rs. 18,000 paying all by cheque. Jan. 8 Sold goods...
Willow Rentals purchased office supplies on credit. The general journal entry made by Willow Rentals will include a: A.Debit to Accounts Receivable.B.Credit to Accounts Payable.C.Credit to Willow, Capital.D.Debit to Accounts Payable.E.Credit to Cash....
When a business earnsincomeand receives the payment for thisimmediately, we record the following: Click here for thefull lesson on Recording Income Received in Cash. 6. Journal Entry for Income on Credit This is the journal entry for when a business makes income but does not receive the payme...
Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-stitching $125,000 26,750 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 25,600 102,400 187,000 ...
In this journal entry, the freight-in account is a temporary account in which its normal balance is on the debit side. This account will be cleared at the end of the period when we calculate the cost of goods purchased. Basically, the freight-in cost here is considered as a part of th...
(Being sugar purchased with cash and credit) Adjusting Journal Entry There is another kind of journal entry called the adjusting journal entry. To understand adjusting journal entries, let’s continue with the above example where Mrs. Pay paid for sugar with both cash and credit. Two weeks ...
In bookkeeping, when a journal entry is made, we usually include the transaction date, the debit and credit accounts, and the description/explanation of the journal entry.Answer and Explanation: When a company earns $5,000 of services on account, the company must reco...
Entry #14— PGS has more cash sales of $25,000 with cost of goods of $10,000.Entry #15— In lieu of paying himself, Paul decides to declare a $1,000 dividend for the year.Now that these transactions are recorded in their journals, they must be posted to the T-accounts or ledger...
The journal entry is shown below:Inventory —— Accounts Payable ——Purchase Discount:Purchase discount will reduce the inventory directly. Thus:Accounts Payable —— Inventory ——Purchase Return:When inventory purchased is subsequently returned to the supplier, the journal entry is to debit ...
Descriptionof goods purchased Invoice number Amountof the purchase Each entry in the purchases journal is used later when preparing financial statements. This systematic recording helps in acknowledging the purchases made on credit and managing liabilities effectively. ...