Question

Oriole Company had the following transactions during the first week of May. Record the following transactions in general journal form Identify each transaction by number. You may omit explanations of the transaction. (Credit account titles are automatically Indented when amount is entered. Do not indent manually) 1 Purchased supplies on account for $480. 2 Performed services and billed the customer $1,850. 3. Received cash of $840 for services to be performed in June 4. Collected $650 on account. 5. Paid $250 on account. No. Account Titles and Explanation 1. Debit Credit 2. الي هي 5.

Answer 1

Date	Account	Debit	Credit
1.	Supplies	$ 480
	To Accounts payable		$ 480
2.	Accounts receivable	$ 1,850
	To Service revenue		$ 1,850
3.	Cash	$ 840
	To unearned revenue		$ 840
4.	Cash	$ 650
	To Accounts receivable		$ 650
5.	Account payable	$ 250
	To Cash		$ 250

SUMMARY:

1. Supplies is an asset and is increased while account payable also increases because it is a liability.

2. Service is performed which means that the revenue to be record and also cash is not received, so accounts receivable increases.

3. Cash received in advance to be recorded as unearned service revenue because it is not yet provided. When it is provided, revenue is to be recorded.

4. Received cash from customer.

5. Paid accounts payable a portion.