Question
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For each of the following independent situations, prepare journal entries to record the initial transaction on 31 and the adjustment required on January 31 a Magnificent Magazines received $10,800 on December 31, 2015, for subscription services related to es that will be published and distributed in January through December 2016. b. Walker Window Washing paid $1,080 cash for supplies on December 31, 2015. As of January 31, 2016, $180 of these supplies had been used up c Indoor Raceway received $2,700 on December 31, 2015, from race participants for providing services for three races. One race is held in January 31, 2016, and the other two will be held in March 2016 Journal Entry Worksheet Record the receipt of $10,800 on December 31, 2015, for subscription services related to magazines that will be published and distributed from January through December 2016. Date General Journal Debit Credit
Explanation / Answer
journal entries in december 2015
received in advance a/c $ 2,700
adjustment entries in january 2016
transaction number a/c debit amount credit amount 1 cash a/c $ 10,800 received in advance $ 10,800 2 purchases a/c $ 900 paid in advance a/c $ 180- cash a/c $ 1,080 3 cash a/c $ 2,700
