Respuesta :
Answer:
The general journal entry to be made is:
Dr Cash($200+$125) $325
Cr Revenue from services provided $200
Cr Revenue from rental services $125
Explanation:
The sales revenue is made up of dance and rental services which implies that the account for each is credited with $200 and $125 respectively as increase in income naturally is credited to revenue.
On other hand the receipt of cash of $200 as well as $125 which sums up to $325 implies that cash has increased by the same amount, since cash is an asset an increase in asset has a debit entry, that justifies the reason for debiting cash account with $325
Answer:
Debit Cash account $325
Credit Service revenue $200
Credit rental revenue $125
Being entries to recognize revenue earned from the provision of dance instructions and rent of studio.
Explanation:
The dance instruction provided is a stream of revenue while the studio rented out is another stream.
When a service is rendered or goods are delivered and the revenue recognition criteria are met, the entries required are
Debit Cash/Accounts receivable
Credit Revenue
Total amount of cash received = $200 + $125
= $325
