How will this be displayed in a journal entry? T-account? Brett Farve opened Cor
ID: 2337271 • Letter: H
Question
How will this be displayed in a journal entry? T-account?
Brett Farve opened Cornelian Window Washing Inc. on July 1, 2011. During July the following transactions were completed.
20
Brett met with the manager of the large office building (Axis Building) and submitted a bid of $5,500 for complete window washing maintenance 4 times per month. The manager liked the bid but had to discuss this large a contract with the owner. Brett is almost sure the work will come in starting August 1.
26
Brett got a phone call from the manager of the Axis Building. The owner was willing to pay $5,000 per month for 4 window washings. Brett considered the offer and said it seemed acceptable for him. The manager said to bring over the contract and start during the week of August 5th.
31
When he picked up the truck after servicing the maintenance man told
him the truck should be winterized before November. The cost for all the work would be $75. Brett made an appointment for winterization of the truck on September 13.
31
An employee approached Brett with a salary request. The employee was willing to work for $3 less an hour if Brett would pay the salary ‘under the table’. The employee’s spouse had a good job and the salary the employee was getting would put the family into a new income tax bracket. The employee was a good employee and would have to quit if Brett did not oblige. Brett saw the savings opportunity but said he’d have to talk to his advisor.
20
Brett met with the manager of the large office building (Axis Building) and submitted a bid of $5,500 for complete window washing maintenance 4 times per month. The manager liked the bid but had to discuss this large a contract with the owner. Brett is almost sure the work will come in starting August 1.
Explanation / Answer
July 2011
Explanation
1.Brett only submitted bid of $5,500. No financial transaction incorporated
2.owner willing to pay $5,500 not paid
3.Brett made only appointment of winterization of truck cost would be $75.
4.The employee was willing to work for $3 less an hour if Brett would pay the salary ‘under the table’. Not paid or payable only salary request.
No financial transaction happened, so no journal entry as well as T accounts.
Date Account titles and description Debit Credit 20 No entry 26 No entry 31 No entry 31 No entryRelated Questions
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