Question

Record the following transactions in the general journal

customers are charged $75 per each unit

inventory can be purchased for $36 per unit

Customers are charged $87 per hour for services rendered

Dec. 1 Sold $4,350 worth of gift cards in opening celebration for services to be provided in December. The gift cards expire at the end of the month.

General journal

Answer 1

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Naming covention is not available, can be slightly different: Solution: Jounal entries Account title and explaination Cash Deferred Revenue - Gift cards (To record the sale of gift cards) Deferred Revenue - Gift cards Debit Date Credit 3Dec.01 4350 4350 10) Dec.06 $3,480 (87 40) $3,480 Service Revenue (To record the service revenue) (100 75) Accounts Receivable $ 7,500 13) Dec.12 Sales Revenue $ 7,500 (To record the sales revenue) Cost of goods sold Inventory (To record the cost of goods sold) Accounts Receivable Sales Revenue (100 36) $ 3,600 Dec.12 $ 3,600 $13,500 15) Dec.23 (180*75) $ 13,500 (To record the sales revenue) Cost of goods sold Inventory Dec.23 (180*36) $6,480 $ 6,480 (To record the cost of goods sold)