Question

Can you help me in journaling? (Journal Entry, Accounting)

I just need an example or basis.
Please put in in a 2 column worksheet.

Last 15th of September, Nightowl Cleaners decided to sign the company for an 8 month advertising contracts for a full blast advertising of all its products. The company received ₱780,000 for the contract and the accountant credited the amount of Unearned Advertising.
Ngipin Dental Clinic bought ₱800,000 worth of dental equipment from Dila dental supply. Terms: 20% down payment and the remaining balance on account.
A. Increase in Unearned Advertising: ₱780,000; Decrease in Revenue: ₱780,000
B. Increase in Equipment: ₱800,000; Decrease in Cash: ₱800,000
C. Increase in Cash: ₱800,000; Decrease in Accounts Receivable: ₱800,000
D. Increase in Accounts Receivable: ₱800,000; Decrease in Cash: ₱800,000

Answer 1

The journal entry for Nightowl Cleaners receiving ₱780,000 for an advertising contract would be a credit to Unearned Advertising and a debit to Cash.

Step-by-step explanation:

The journal entries for the given transactions can be recorded as follows:

Account NameDebit (+)Credit (-)Unearned Advertising₱780,000Cash₱780,000

Explanation: Nightowl Cleaners received ₱780,000 for the advertising contract, which is a liability for the company as the services are not yet provided. Therefore, the amount is recorded as a credit in the Unearned Advertising account, and a debit is made to the Cash account to reflect the increase in cash.