Please help me with some basic accounting homeowrk

[Azndude51]

How would I make a journal entry for this problem:

Sales revenue totaled $316,000 for 2007. $212,000 was for cash, the remaining $104,000 was on credit.


This is what I assume it should be like:
Cash (+Asset) ........................................$212,000
Receivables and other assets (+Asset).......$104,000
? (?).............................................................$316,000


What should I fill in as the first question marks? I know Asset = Liabilities + Stockholders equity, so the 2nd question mark should be either -Asset, +Liablitiies or +Stockholders equtiy

Thanks in advance

 

[BoomerD]

I'm in my first semester of bookkeeping too, so...IIRC, don't you have an account under the O.E. side called "Revenue" where the sales amounts would be entered, then broken up into $$ to cash and $$ to Accts. Receivable?

 

[skim milk]

I wish I can help... but I freaking hate accounting. I took two accounting classes in college, passed them and never looked back

 

[xeemzor]

Yep, the rest should be put as revenue under O.E. Check the wiki article for more info.

 

[BoomerD]

It seemed like in order to keep the "basic accounting equation" in balance, there would have to be an entry in O.E that balanced the cash & A/R.

I just finished my 3rd week of bookkeeping 1, so I really don't know shit about this yet...but I'm lernin...

 

[Orsorum]

Your corresponding credit will actually be an income statement account. From there, it will flow into the company's trial balance and will eventually be rolled into retained earnings (an equity account).

Journal entry should look as follows:

Cash 212,000 (balance sheet account, asset)
Accounts Receivable 104,000 (balance sheet account, asset)
' Revenue 316,000 (income statement account)

At year-end closing, you reverse the revenue account as it flows through to the income statement like so:
Revenue 316,000 (income statement account)
' Net Income 316,000 (income statement account)

And finally, you close Net Income to Retained Earnings
Net Income 316,000 (income statement account)
' Retained Earnings 316,000 (balance sheet account, owners' equity)