Transaction Journal Entry Debit Credit Ex. Service revenue earned and cash collected in full. 5 14 A. Collected cash from a customer for services to be provided in the future. B. Provided service to a customer on credit. C. Paid current operating expenses. D. Recorded income tax expense for the period; all of it will be paid next year. E. Paid insurance premiums for next year. F. Used supplies previously purchased. G. Provided services to customers pertaining to transaction A. H. Paid cash for income tax owed from last year. I. Received payment for transaction B above. J. Declared and paid dividends to stockholders.

Journal Entries:

A. Debit Cash Account $

Credit Unearned Revenue $

To record cash collected from a customer for services to be provided in the future.

B. Debit Accounts Receivable $

Credit Service Revenue $

To record services provided to a customer on credit.

C. Debit Operating Expense $

Credit Cash Account $

To record the payment of current operating expenses.

D. Debit Income Tax Expense $

Credit Income Tax Payable $

To record income tax expense for the period, payable next year.

E. Debit Prepaid Insurance $

Credit Cash Account $

To record the payment for insurance premiums for the next year.

F. Debit Supplies Expense $

Credit Supplies $

To record the supplies used.

G. Debit Unearned Service Revenue $

Credit Service Revenue $

To record revenue earned.

H. Debit Income Tax Payable $

Credit Cash Account $

To record the payment of income tax payable.

I. Debit Cash Account $

Credit Accounts Receivable $

To record the receipt of payment from customer.

J. Debit Dividends $

Credit Dividends Payable $

To record the declaration of dividends.

Debit Dividends Payable $

Credit Cash Account $

To record the payment of dividends

Explanation:

The journal entries are recorded on a daily basis as the transactions occur.  These entries show the accounts to be debited and credited in the general ledger.

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