Eduardo's Dance Studio provided $290 of dance instruction and rented out its dance studio to the same client for another $170. The client paid immediately. Identify the general journal entry below that Eduardo's will make to record the transaction. Unearned Revenue 595 Rental Revenue 170 Instruction Revenue 290 Accounts Payable 595 Cash 595 Accounts Receivable 595

Question

Business

Daniel Vazquez

11 October, 12:47

Eduardo's Dance Studio provided $290 of dance instruction and rented out its dance studio to the same client for another $170. The client paid immediately. Identify the general journal entry below that Eduardo's will make to record the transaction. Unearned Revenue 595 Rental Revenue 170 Instruction Revenue 290 Accounts Payable 595 Cash 595 Accounts Receivable 595

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Yair Henry · Answer 1

Cash 460 debit

Rental Revenue 170 credit

Instruction Revenue 290 credit

Explanation:

As the customer paid the rent and instruction right away we are going to use cash, not accounts receivables.

We aren't given with the duration of the rent but base on the amount we should assume it was for a day and it is already earned. Same with the intructions as they are wirtten in past. "provided dance instruction" "rented dance ttudio"

Thus, we have rental revenue and instruction revenue which are going to be posted in credit.