Ask Question
25 November, 19:26

Following are the transactions of Green Company. May 1 The company billed a customer $3,400 in consulting revenue for sustainable proposals. 3 The company purchased $1,000 of energy-efficient supplies on credit. 9 The company collected $2,400 cash as partial payment of the May 1 consulting revenue. 20 The company paid $1,000 cash toward the payable for energy-efficient supplies. 31 The company paid $800 cash for May's renewable energy utilities. Prepare general journal entries for the above transactions.

+5
Answers (1)
  1. 25 November, 23:03
    0
    Accounts Receivable 3,400

    Consulting Revenue 3,400

    Supplies 1,000

    Accounts Payable 1,000

    Cash 2,400

    Accounts Receivable 2,400

    Accounts Payable 1,000

    Cash 1,000

    Utilities expense 800

    Cash 800

    Explanation:

    The services are earned and were only billed not collected. So the company should reocgnize the receivable

    The purchase of supplies is con credit, the company will recognize a liability

    When the company collects from the account, it will decrease and cash will increase

    When paying the supplier, their cash decrease and the liability is write-off

    The utilities expense are cost of the period, so are recognize as expense.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Following are the transactions of Green Company. May 1 The company billed a customer $3,400 in consulting revenue for sustainable ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers