Pharoah Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Ivanhoe Company employees. The total cruise package price to Ivanhoe Company employees is $63,000. Pharoah Inc. receives a commission of 5% of the total price. Pharoah Inc. therefore remits $59,850 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $63,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Pharoah Inc. on this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. 2. Cash Accounts Payable No Entry Accounts Payable Cash sales Debit 63,000 63,000 Credit 63,000 0 59,850

Pharoah Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Ivanhoe Company employees. The total cruise package price to Ivanhoe Company employees is $63,000. Pharoah Inc. receives a commission of 5% of the total price. Pharoah Inc. therefore remits $59,850 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $63,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Pharoah Inc. on this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. 2. Cash Accounts Payable No Entry Accounts Payable Cash sales Debit 63,000 63,000 Credit 63,000 0 59,850

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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