Nicole’s Getaway Spa (NGS) continues to grow and develop. Nicole is now evaluati

Question

Nicole’s Getaway Spa (NGS) continues to grow and develop. Nicole is now evaluating a computerized accounting system and needs your help in understanding how source documents inform accounting processes. She also needs some help reconciling NGS’s bank account.

For each source information shown below, prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Nicole’s Getaway Spa (NGS) continues to grow and develop. Nicole is now evaluating a computerized accounting system and needs your help in understanding how source documents inform accounting processes. She also needs some help reconciling NGS’s bank account.

For each source information shown below, prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

a. Purchase order dated October 13 for massage chairs costing $775 and oil supplies costing $250. b. Remittance advice from customer for $95, received October 17. c. Receiving report indicating October 22 receipt of October 13 order. Also received supplier invoice totaling $1,025 d. NGS check for payment in full of October 13 order.

Explanation / Answer

Solution:

Journal Entries - NGS Event Particulars Debit Credit a No Entry b Cash Dr $95.00            To Accounts receivables $95.00 (Cash received from customer) c Furniture Dr $775.00 Oil supplies Dr $250.00            To Accounts payables $1,025.00 (To record purchase of chair and oil supplies) d Accounts payable Dr $1,025.00            To Cash $1,025.00 (To record payment to supplier

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.