May 6 Cash 3900
Service Revenue 3900
Performed service for cash.
[debit] cash / bank
[credit] services revenue
debit accounts receivablecredit services revenue
[Debit] Cash / bank [Credit] Services revenue
Revenue journal
Revenue Journal
[Debit] cash / bank xxxx [credit] sales xxxx
debit accounts receivablecredit services revenue
[Debit] Cash / bank [Credit] Services revenue
Revenue journal
Revenue Journal
debit services costcredit cash
[Debit] cash / bank xxxx [credit] sales xxxx
debit website services expensecredit cash / bank
debit credit cash 2500 sales 2500
The journal entry for prepaid income is a debit to the Cash account and a credit to the Unearned Revenue account. The Unearned Revenue account is a liability. The rationale for such an entry is that this is income received in advance. This means that the income has not been earned since the services have not yet been performed. When the services have been performed it is appropriate to recognize the revenue and offset the liability account, unearned revenue.
A cash advance received from customer journal entry is required when a business receives a cash payment from a customer in advance of delivering goods or services.
debit bankcredit cash
[Debit] Bank service charges xxxx [Credit] cash / bank xxxx