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The emergency replacement of Tom’s air conditioner took place late at night after the bank had closed for the day. Tom was able to pay the repairman $400 of the bill using cash from the register. Tom and the repairman agreed that Tom would pay the remaining amount, $500, the following morning, once the bank had reopened.

Which of the illustrations below correctly shows the repair man recording deposit received for a sale on an account ?

The emergency replacement of Toms air conditioner took place late at night after the bank had closed for the day. Tom was able to pay the repairman $400 of the bill using cash from the register. Tom and the repairman agreed that Tom would pay the remaining amount, $500, the following morning. once the bank had reopened. Which of the illustrations below correctly shows the repair man recording a deposit received fora sale on an account?
2 GENERAL JOURNAL GENERAL JOURNAL GENERAL JOURNAL 1600 101 $400 01 $400 201 /160 1011 $400 ACCE PAYABLE 201 4 6 GENERAL JOURNAL GENERAL JOURNAL GENERAL JOURNAL 400 1 $400 SALES REVENUE 201
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Answer #1

Golden rules of journalizing the transactions: 1. Assets Debit asset account-To increase the asset balance Credit asset account-To decrease the asset balance 2. Liability Credit liability account - To increase the liability balance Debit liability account - To decrease the liability balance 3. Expenses and Losses Debit expense account - To increase the expense balance Credit expense account - To decrease the expense balance 4. Revenues and Gains Credit revenue account- To increase the revenue balance Debit revenue account - To decrease the revenue balance Answer is Cash is an asset and repair man received it for the replacement. So, cash balance has increased. That is why, cash account has to be debited Repair man sold the air conditioner to Tom. So, it is a revenue to repair man. To increase the balance of revenue in the books of accounts, Sales Revenue account has to be credited. Date Account REF. Debit Credit 9/16/XXCash 101 $400 Sales Revenue 201 $400

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