eztomheducationcom 6 187 points M314 Preparing Accrual Basis

ezto.mheducation.com 6. 1.87 points M3-14 Preparing Accrual Basis Journal Entries for Business Activities [LO 3-3] Junktrader is an online company that specializes in matching buyers and sellers of used items. Buyers and attractive ofers a. Junktrader provided online advertising services for another company for $375 on account aelect wan urchase a membershp wi Junktrader. which provides them edvance nolice of potentialy b. On the last day of the month, Junktrader paid $140 cash to run an ad promoting the company\'s services. The ad ran that day in the local newspaper c. Received $280 cash in membership fees for the month from new members. d. Received an electricity bill or $125 for usage this month. The bill will be pald next month. Biled a customer $186 for helping by the end of next month sel some junk. Junktrader expects to receive the customer\'s payment 1. Prepare joumal entries for the above transactions, which occurred during a recent month. (If no entry is required for a transaction/event, select \"No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Junktrader provided online advertising services for another company for $375 on account. Record the transaction. Note: Enter debits before credits Debit Credit MacBook Pro esc

Solution

1) Journal Entries :

2) Junktrader\'s Preliminary Net Income :

Date	Accounts Titles and explanation	Debit $	Credit $
a	Accounts Receivables	375
	Service revenue		375
	(advertisement revenues raised)
b	Advertisement Expenses	140
	Cash		140
	(the advertisement expenses made)
c	Cash	280
	Membership Fees Revenue		280
	(being membership fees received)
d	Utility Expenses	125
	Expenses payable		125
	(being electricity expenses booked)
e	Accounts Receivable	186
	Miscellaneous Revenues		186
	(being sale of junk)