Accounting: Accounts Receivable and Service Revenue Essay

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Company: Travel Agency Sole proprietorship
Transaction：
1) 1 Apr. 2011
Starting the business: invested ＄900000 cash to start the business Cash at bank 900000 Josie, Capital 900000

2）2 Apr. 2011
Paid ＄20000 cash for building Building 20000 Cash at bank 20000

3）2 Apr. 2011
Purchased equipment for $10000 cash Equipment 10000 Cash at bank 10000

4) 2 Apr. 2011
Costing ＄2500 cash for furniture Furniture 2500 Cash at bank 2500
5) 2 Apr. 2011
Paid $20000 cash for land Land 20000 Cash at bank 20000

6) 3 Apr. 2011
Purchased $8000 of office supplies on credit Office supplies 8000 Accounts payable 8000

7) 4 Apr. 2011
Collected cash of $6000 from client A for service revenue Cash at bank 6000 Service revenue 6000

8) 5 Apr. 2011
Earned $5000 cash from client B on credit Accounts receivable 5000 Service revenue 5000

9) 9 Apr. 2011
Paid office rent expense: $4000 for April Rent expense 4000 Cash at bank 4000

10) 9 Apr. 2011
Prepaid rent expense $4000 cash for May Prepaid rent expense 4000 Cash at bank 4000

11) 9 Apr. 2011
Paid employee’s first half-month salary expense $5000 Salary expense 5000 Cash at bank 5000

12) 9 Apr. 2011:
Paid electricity & gas expense: $2000 Electricity &Gas expense 2000 Cash at bank 2000

13)11 Apr. 2011:
Collected $2000 cash from client B Cash at bank 2000 Account receivable 2000

14) 13 Apr. 2011
Paid $3000 on the account Account payable 3000 Cash at bank 3000

15) 15 Apr. 2011
Sold some of land owned by Josie Travel Agency $10000 equals the cost Cash at bank 10000 Land 10000

16)16 Apr. 2011
Withdrew $20000 cash for personal expense Josie, Drawings 20000 Cash at bank 20000

17) 18 Apr. 2011
Receiving $4000 from client C in advance Cash at bank 4000 Unearned service revenue 4000

18) 20 Apr. 2011
Paid: insurance expense, $1000 cash Insurance expense 1000 Cash at bank 1000

19) 23 Apr. 2011
Amount of unearned service revenue that has been earned $2000 Unearned service revenue 2000 Service revenue 2000

20) 25 Apr. 2011
Accrued service revenue, $ 30000 Accounts receivable 30000 Service revenue 30000

21）26 Apr. 2011
Collected cash of $4000 from client D for service revenue Cash at bank 4000 Service revenue 4000

22) 30 Apr. 2011
Paid cash of $5000 for additional salary expense Salary expense 5000 Salary payable 5000

23)30 Apr. 2011
$5000 of supplies on hand at the end of April Supplies expense ($8000-$5000) 3000 Supplies 3000

24) 30 Apr. 2011
Depreciation on furniture, $1000 Depreciation expense-furniture 1000 Accumulated depreciation-furniture 1000

25) 30 Apr. 2011
Depreciation on building, $2000 Depreciation expense-building 2000 Accumulated depreciation-building 2000

|Josie Travel Agency |
|Income Statement |
|For the month ended 30 April 2011 |
|Revenue | | |
|Service revenue | |$47000
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