Earning of product sales revenue: Financial events series, part 15 of 29
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TechnolOntario is up and running. They start selling software and the cash register reports $1,200 in sales by the end of the first day.
The journal entry would record this event as a $1,200 debit for cash assets and a $1,200 credit for revenue (software sales).
The financial statements would read:
Information on this series
To demonstrate how various business transactions and other economic events impact the financial statements, this series tracks the accounts of the first fiscal year of a fictional start-up company called TechnolOntario, Inc. Common financial events are introduced and recorded one by one, and they accumulate on the financial statements as TechnolOntario’s fiscal year progresses.
Note that together these examples form a series of 29 articles. Check our complete list of accounting examples to specifically select which ones you’d like to see. Or you can follow the series from start to finish. This article is part 15 of 29.
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References
Markle, K. (2004, August). Introduction to Accounting. Presentation delivered at Schulich School of Business, York University, Toronto, Canada.
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