Question

Gi Gi's Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100. The client paid immediately. Identify the general journal entry below that Gi Gi's will make to record the transaction.

Answer 1

Explanation:

The journal entry is shown below:

Cash A/c Dr $250

   To Rental revenue A/c $100

   To Instruction revenue A/c $150

(Being the cash is received for the service provided)

Basically we debited the cash for $250 or the total amount of service provided and credited the rental revenue and instruction revenue for $100 and $150 respectively