Following are the transactions of green company. may 1 the company billed a customer $3,400 in consulting revenue for sustainable proposals. 3 the company purchased $1,000 of energy-efficient supplies on credit. 9 the company collected $2,400 cash as partial payment of the may 1 consulting revenue. 20 the company paid $1,000 cash toward the payable for energy-efficient supplies. 31 the company paid $800 cash for may’s renewable energy utilities. prepare general journal entries for the above transactions.

Accounts Receivable 3,400

    Consulting Revenue 3,400

Supplies   1,000

    Accounts Payable   1,000

Cash     2,400

   Accounts Receivable 2,400

Accounts Payable  1,000

   Cash                           1,000

Utilities expense   800

  Cash                               800

Explanation:

The services are earned and were only billed not collected. So the company should reocgnize the receivable

The purchase of supplies is con credit, the company will recognize a liability

When the company collects from the account, it will decrease and cash will increase

When paying the supplier, their cash decrease and the liability is write-off

The utilities expense are cost of the period, so are recognize as expense.

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