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27 August, 06:35

hat is the journal entry Pogrund makes to record the receipt of the $10,000 good faith deposit on December 31, 2019? What is the journal entry Pogrund makes on March 31, 2020 to record the receipt of an additional $85,000 from David Corporation when it signs the contract? What is the journal entry Pogrund makes on June 30, 2020 when David notifies Pogrund that it is terminating the contract?

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  1. 27 August, 07:01
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    June 30,2020

    Dr Deposit Account ($85,000+$10,000)

    $ 95,000

    Cr To Profit & Loss / Income Account $ 95,000

    Explanation:

    A.

    December 31. 2019

    Dr Bank/Cash Account $ 10,000

    Cr To Deposit Account $ 10,000

    B.

    MARCH 31, 2020

    Dr Bank/Cash Account $ 85,000 DR

    Cr To Deposit Account $ 85,000 CR

    C.

    June 30,2020

    Dr Deposit Account ($85,000+$10,000)

    $ 95,000

    Cr To Profit & Loss / Income Account $ 95,000

    Being Contract is Terminated by David Corporation in which the Amount is Forfieted.
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