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Jensen Cleaning Service uses the listed accounts. (Some of the accounts will be explained in Lesson 2-3.) Prepare two T accounts for each transaction. On each T account, select the account title of one of the accounts affected by the transaction. Enter the debit or credit amount in each T account to show the transaction’s effect.


This is the problem - it's for T Accounts- I just need to understand how to write it when it's like this

Respuesta :

Answer:

Cash Sales Transaction

Journal Entry

Dr.  Cash   100,000

Cr.   Sales  100,000

Cash received and sales has been recorded due to the nature of Cash and Income, Cash and Sales is entered as Debit and credit respectively.

* For Journal posting MS excel file is attached which has T account with above transaction posted in it.

Explanation:

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The debit of the journal entry is debited to the relevant T account and the credit of the journal entry is credited to the relevant T account.

The general ledger may have different T- accounts but the posting of entries may differ in the T- accounts  as compared to the journal entry depending on the nature of the entry and the T-account.

For example suppose the company has the rent expense of $ 100,000 for the current month and is payable by the end of the quarter.

The journal entries are

Rent Expense $ 100,000 Dr.

Rent Payable $ 100,000 Cr.

At the end of the quarter the entry would be

Rent Payable $ 100,000 Dr.

Cash $ 100,000 Cr.

Now 3  T- accounts are used

Rent Expense                   Rent Payable                Cash      

Dr               Cr                           Dr                  Cr                  Dr             Cr

$ 100,000 Dr                                    $ 100,000Cr                  $ 100,000 Cr

$ 100,000Cr                                $ 100,000Dr                                            

Now notice that the rent is first debited as it is an expense and expenses are debited. Then it is credited when it is paid.

Rent Payable is credited as it is a liability and then debited when it is paid.

Cash is credited as expense is paid.

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