Eureka Design Bhd entered into a contract to deliver one of its fixtures and fittings to Creative Landscaping Bhd on 1st July 2020. The contract requires Creative Landscaping to pay the contract price of RM30,000 in advance on 15th July 2020. Creative pays Eureka on 15th July 2020 and Eureka delivers the fixtures and fittings (with cost of RM19,000) on 31st July 2020.
Required:
ii) Prepare the journal entry on 1st July 2020 for Eureka Design Bhd.
iii) Prepare the journal entry on 15th July 2020 for Eureka Design Bhd.
iv) Prepare the journal entry on 31st July 2020 for Eureka Design Bhd.
| Date | Accounts title and explanation | Dr(RM) | Cr(RM) |
| July 1, 2020 | No entry req. | ||
| July 15, 2020 | Cash | 30,000 | |
| Unearned sales revenue | 30,000 | ||
| (To record the receipt of advance received against the contract) | |||
| July 31, 2020 | Unearned sales revenue | 19,000 | |
| Sales revenue | 19,000 | ||
| (To record the partial sales aginst the advanced received on 15th July) |
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