Partnership journal entry for draws will record the journal entry related to withdraws. We will enter the journal entry into the general journal, post it to the general ledger, and create the trial balance from the general ledger. The accounting transaction will debit draws and credit cash.
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comprehensive problem purchase of insurance where we will enter the journal entry related to the purchase of insurance. We will journalize the journal entry to the general journal, post the accounting transaction to the general ledger, and create the trial balance from the general ledger. The journal entry will debit prepaid insurance, an asset, and credit cash. We do not debit insurance expense because we have not yet consumed the insurance and therefore should not record an expense according to the matching principle, one of the core accrual principles related to when to record expenses. We will record insurance expense at the end of the period with the use of adjusting entries, debiting insurance expense and crediting prepaid insurance, increasing the expense and decreasing the asset.
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Comprehensive partnership problem recording journal entry related to unearned revenue. The journal entry will be journalized in the general journal, posted to the general ledger and be used to create the trial balance. Unearned revenue is a result of receiving cash that has not yet been earned. In other words, cash is received before work is done. We will enter the journal entry with a debit to cash and a credit to unearned revenue. Unearned revenue is a liability account representing they owing of work in the future.
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