Junktrader is an online company that specializes in matching buyers and sellers of used items. Buyers and sellers can purchase a membership with Junktrader, which provides them advance notice of potentially attractive offers.

a. Junktrader provided online advertising services for another company for $380 on account.
b. On the last day of the month, Junktrader paid $75 cash to run an ad promoting the company's services. The ad ran that day in the local newspaper.
c. Received $205 cash in membership fees for the month from new members.
d. Received an electricity bill for $130 for usage this month. The bill will be paid next month.
e. Billed a customer $216 for helping sell some junk. Junktrader expects to receive the customer's payment by the end of next month.

Required:
Prepare joumal entries for the above transactions, which occurred during a recent month.

Question

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Respuesta :

anthougo anthougo · Answer 1 · 2021-06-15T03:36:45+02:00

Answer:

Junktrader

Journal Entries;

a. Debit Accounts Receivable $380

Credit Advertising Service Revenue $380

To record advertising service revenue provided on account.

b. Debit Advertising Expense $75

Credit Cash $75

To record the payment for ad in the local newspaper.

c. Debit Cash $205

Credit Membership fees $205

To record membership fees for the month.

d. Debit Electricity Expense $130

Credit Electricity Expense Payable $130

To accrue electricity expense for the month.

e. Debit Accounts Receivable $216

Credit Fees Revenue $216

To record fees revenue for services rendered on account.

Explanation:

1) Data and Transaction Analysis:

a. Accounts Receivable $380 Advertising Revenue $380

b. Advertising Expense $75 Cash $75

c. Cash $205 Membership fees $205

d. Electricity Expense $130 Electricity Expense Payable $130

e. Accounts Receivable $216 Fees Revenue $216