Question

Today is 3 February 20XX. You are using the accrual method of accounting. You have received an invoice from Halco Industries in the amount of $565 for work performed on Project 101. You also mailed an invoice to Ajax International for payment of work performed by your company in the amount of $6,238 on Project 101. On 10 February you send a check to Halco to cover their billing and receive a check from Ajax on 12 February in the amount of your billing to them. Make the proper journal entries on a sheet captioned as in Table P4.1.

TABLE P4.1 Company Journal Transaction# Date Description Debit Credit

Answer 1

	Date	Description	Debit	Credit
1	Feb-03	Project 101 A/c / Expense	$              565.00
		Accounts Payable		$              565.00
		(Work peformed by Halco Industries)
2	Feb-03	Accounts Receivable	$          6,238.00
		Project 101 A/c / Service Revenue		$          6,238.00
		(Raised invoice for work performed)
3	Feb-10	Accounts Payable	$              565.00
		Cash		$              565.00
		(Payment made on account)
4	Feb-12	Cash	$          6,238.00
		Accounts Receivable		$          6,238.00
		(Collected cash from customers)