232k views
2 votes
Student scholarships for which no service was required were applied to student accounts in the amount of $5,000. What is the journal entry to record this event?

User Krsnaadi
by
7.4k points

1 Answer

3 votes

Final answer:

The journal entry to record the student scholarships for which no service was required in the amount of $5,000 is a debit to Tuition Revenue and a credit to Scholarships Payable.

Step-by-step explanation:

The journal entry to record the student scholarships for which no service was required in the amount of $5,000 would be:

Debit: Tuition Revenue - $5,000

Credit: Scholarships Payable - $5,000

This journal entry increases the Tuition Revenue account because the scholarships are being applied to student accounts as a form of payment. It also increases the Scholarships Payable liability account because the school owes the scholarship amount to the students.

User Shama
by
7.4k points