Question

a. Accounts Receivable. At year-end, the Krug Company has completed services of $25,500 for a client, but the client has not yet been billed for those services. b. Interest Receivable. At year-end, the company has earned, but not yet recorded, $650 of interest earned from its investments in government bonds. c. Accounts Receivable. A painting company collects fees when jobs are complete. The work for one customer, whose job was bid at $1,820, has been completed, but the customer has not yet been billed. View transaction list Journal entry worksheet 23 At year-end, the Krug Company has completed services of $25,500 for a client, but the client has not yet been billed for those services. Note: Enter debits before credits Debit Credit Transaction General Journal

Answer 1

1. to record the entry for credit sales, we will debit accounts receivables account, as AR is an asset and asset has debit balance

accounts receivable account debit $25,500

to sales account $25500

(to record the sales)

2. interest receivable is the interest which is earned but not received in cash, thus the journal entry would be

interest receivable account debit $650

to interest income account $650

(for recording accrued interest)

3. since the income is yet to be received the accounts receivable account will be debited

accounts receivable account debit $1820

to sales account $1820

(to bill the customer for completed painting)