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Junktrader is an online company that specializes in matching buyers and sellers of used items. Buyers and sellers can purchase a membership with Junktrader, which provides them advance notice of potentially attractive offers. a. Junktrader provided online advertising services for another company for $325 on account. b. On the last day of the month, Junktrader paid $120 cash to run an ad promoting the company’s services. The ad ran that day in the local newspaper. c. Received $215 cash in membership fees for the month from new members. d. Received an electricity bill for $96 for usage this month. The bill will be paid next month. e. Billed a customer $374 for helping sell some junk. Junktrader expects to receive the customer’s payment by the end of next month. Prepare journal entries for the above transactions, which occurred during a recent month. (If no entry is required for a transaction/event, select “No Journal Entry Required” in the first account field.) Junktrader provided online advertising services for another company for $325 on account. Record the transaction. Determine Junktrader’s preliminary net income. Preliminary Net Income
Expert Answer
| Transaction | General Journal | Debit | Credit |
| a. | Accounts receivable | $ 325 | |
| Advertising revenue | $ 325 | ||
| b. | Advertising expense | $ 120 | |
| Cash | $ 120 | ||
| c. | Cash | $ 215 | |
| Subscription revenue | $ 215 | ||
| d. | Electricity expense | $ 96 | |
| Accounts payable | $ 96 | ||
| e. | Accounts payable | $ 374 | |
| Service revenue | $ 374 |
The account names for Advertising revenue, Subscription revenue and Service revenue can be different as per the options provided in the question.
