Suppose your company sells services for $355 cash this month. Your company also

Question

Suppose your company sells services for $355 cash this month. Your company also pays $145 in salaries and wages, which includes $45 that was payable at the end of the previous month and $100 for salaries and wages of this month. value: 2.50 points Required 1. Prepare the journal entries to record these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list 1 Record the service revenue of $355 for cash. 2 Record the salaries and wages paid of $145.

Explanation / Answer

1) Recording of service income

Cash account DR. 355

To service revenue 355

(Being income of service revenue is rocorded)

Salaries account DR..100

Outstanding salaries account DR. 45

To cash account 145

2) amount to be reported as cash flow from operating activity

3)net income

Service revenue for the period 355

Less expenses for the period 100

Net income for the period 255

4)

Cash received for service 355 Less cash paid 145 Cash flow from operating system activities 210

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