Jim's Gymnastics Training's operations for the month of October are summarized as follows: • Provided $5,000 of training to students. • Received $8,000 cash from students-of which $4,000 is for training provided in October (as billed above), $1,000 is for training to be provided in November, and $3,000 is for training provided in September. • Paid September's gym rental bill of $1,000. Received October's bill of $1,500, but did not pay. Prepare a journal entry.

Question

Business

Conrad Pitts

23 June, 19:59

Jim's Gymnastics Training's operations for the month of October are summarized as follows: • Provided $5,000 of training to students. • Received $8,000 cash from students-of which $4,000 is for training provided in October (as billed above), $1,000 is for training to be provided in November, and $3,000 is for training provided in September. • Paid September's gym rental bill of $1,000. Received October's bill of $1,500, but did not pay. Prepare a journal entry.

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Answers (1)

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Rocco Merritt · Answer 1

Answer: These transactions can be journalised as follows : -

Explanation:

1. Receivables A/C Dr. 5000

To revenue A/C 5000

(Being paid for training of students)

2a. Cash A/C Dr. 4000

To Receivables A/C 4000

(Being 4000 provided in october)

2b. Cash A/C Dr. 1000

To Receivables A/C 1000

(Being 1000 recieved for training)

2c. Cash A/C Dr. 3000

To Receivables A/C 3000

(Being 3000 recieved for training)

3a. Accounts payable A/C Dr. 1000

To cash A/C 1000

(Being 1000 provided for rental bill of september)

3b. Rental expense A/C Dr. 1500

To accounts payable A/C 1500

(Being 1500 provided for rent bill in october)