On 1st January, 2020 Mr. Thapa started business with Rs. 50,000 which he paid into the business account at Sunrise Bank in Surkhet and stock of goods valued Rs. 30,000. On the same day, he purchased a motor van from Toyota Company valued at Rs. 25,000 and half of the amount is ...
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....
6. Journal Entry for Income on Credit This is the journal entry for when a business makes income but does not receive the payment for this straight away.Accounts receivableis recorded (this is also known asreceivablesordebtors).This is anasset accountrepresenting the amount of funds owed to us...
1. Journal entry worksheet a. Record the purchase of materials (on credit). b. Record direct materials used in production. c. Record the usage of indirect materials. d. Record the cost of direct labor incurred but not yet paid. (Use "Facto...
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...
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 #13— PGS’s first bank loan payment is due.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....
and services purchased on credit. Accounts receivable are an asset account.Accounts payablerepresents the money that you owe to your suppliers for goods and services purchased on credit. Accounts payable is aliabilityaccount.Read more about the difference in accounts payable and accounts receivable ...
Whenever a company has purchased any goods or services from vendors on credit, they need to record AP journal entry in their accounting books. Example- On January 1, 2020, your company ABC company purchased a car for $50,000 on credit from the CDE company. Every company maintains different...
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 ...