When Cash is received (Revenue Unearned revenue) – Received $10,000 Cash for services performed Date Accounts Dr. Cr. 1 Cash 10,000 Services revenue 10,000 Received $10,000 Cash for services will be performed. Date Accounts Dr. Cr. 1 Cash 10,000 Unearned Services revenue 10,000 When inventory is purchased or sold Purchased merchandise inventory for $10,000 terms 2/10, n30 Date Accounts Dr. Cr. 1 Inventory 10,000 Accounts payable 10,000 Sale of inventory costing $4,000 for $6,000 terms 3/15, n 45 Date Accounts Dr. Cr. 2 Accounts Receivable 6,000 Sales revenue 6,000 Cost of goods sold 4,000 Inventory 4,000 Other transactions Purchased Equipment for $20,000 paying $5,000 cash and the balance on Note payable Date Accounts Dr. Cr. 1 Equipment 20,000 Cash 5,000 Note payable 15,000 Supplies used during the year was $200. Date Accounts Dr. Cr. 2 Supplies expenses 200 Supplies 200 4- Adjusting entries:
When Cash is received (Revenue – Unearned revenue) Received $10,000 Cash for services performed Date Accounts Dr. Cr. 1 Cash 10,000 Services revenue 10,000 Received $10,000 Cash for services will be performed. Date Accounts Dr. Cr. 1 Cash 10,000 Unearned Services revenue 10,000 When inventory is purchased or sold Purchased merchandise inventory for $10,000 terms 2/10, n30 Date Accounts Dr. Cr. 1 Inventory 10,000 Accounts payable 10,000 Sale of inventory costing $4,000 for $6,000 terms 3/15, n 45 Date Accounts Dr. Cr. 2 Accounts Receivable 6,000 Sales revenue 6,000 Cost of goods sold 4,000 Inventory 4,000 Other transactions Purchased Equipment for $20,000 paying $5,000 cash and the balance on Note payable Date Accounts Dr. Cr. 1 Equipment 20,000 Cash 5,000 Note payable 15,000 Supplies used during the year was $200. Date Accounts Dr. Cr. 2 Supplies expenses 200 Supplies 200 4- Adjusting entries:
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