Business questions?

Question

Facts :

Company A - supplier

Company B - buyer

Company C - cargo agent / freight forwarding

Company D - carrier / carrier's agent

Situation:

1). Company C will pay Company D for $ 6,000 for the airfreight of cargo.

2). Company C will charge Company A for $ 7,000 (with mark up on the airfreight)

Questions :

1). How much is the revenue of Company C?

2). Give the accounting entries for:

a. Sales Journal

b. Cash Receipt Journal (upon receipt of $ 7,000)

c. Cash Disbursement Journal (upon payment of $ 6,000)

3). What is the accounting entry if Company A pay in advance to Company C ?

4). What is the accounting entry if Company C pay in advance to Company D?

Thank you for your time and help.

Answer 1

Accounting was never easy, but I sincerely did love it once upon a time.  I am certain the answers on how to figure out your General Journal and how to post these items is in your text books.