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Completed learning journals and classroom discussion on principle of accounting for first and second year university students
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Learning Journal UnitUniversity of the Peop
Bus 1102-01, Basic Accou
Tomeika Williams(Instru
October,2024
Scenario 1:
To record the jfor scenario 1, we need to consider the following transactions:
1. On July 1st, Welness Gymm obtained inventory from Equip Store Ltd with a value of $20,000, utilizing
a credit arrangement.Equip Store Ltd provides a 4% credit allowance if payment is completed within 10
days.
Date Particulars Debit ($) Credit ($)
July, 1st Inventory $20,000
Accounts Payable $20,000
2. On July, 23rd Wellness Gym returned damaged inventory valued at $5,000
To record this transaction, we debit the Accounts Payable account and crdit the inventory account.
Date Particulars Debit ($) Credit ($)
Accounts Payable $5,000
3rd July,
Acounts Payable Inventory $5,000
3. On July, 9th Wellness Gym made the full payment to Equip Store Ltd
To record this transaction, we debit the Accounts Payable account and cash account.
, Date Particulars Debit ($) Credit ($)
Accounts Payable $15,000
3rd July, Cash $15,000
SCENARIO 2:
To record the journal entries for Scenario 2, we need to consider the following transactions:
1. On August 1st, Wellness Gym receives an advance payment of $3000 gym subscription for three months from
To record this transaction, we debit the Cash account and credit the Unearned Revenue account.
Date Particulars Debit ($) Credit ($)
Cash $3,000
August,1st
unearned Revenue $3,000
2.On August 30th, Wellness Gym recognizes $ 1,000 of the advance payment as revenue for the services that ha
To record this transaction, we will debit the Unearned Revenue account and credit the Revenue account.
Date Particulars Debit ($) Credit ($)
Unearned Revenue $1,000
August,30th
Cash $1,000
3.On September, 30th, Wellness Gym recognizes an additional $1,000 of the advance payment as revenue for th
To record this transaction, we will debit the Unearned Revenue account and credit the Revenue account.
Date Particulars Debit ($) Credit ($)
Unearned Revenue $1,000
August,30th
Cash $1,000
Scenario 3:
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