Luminous Electrical Repair Performed Services Costing $8,000 on January 24

question 92

Essay

Luminous Electrical Repair performed services costing $8,000 on January 24 and invoiced the customer. Luminous received the $8,000 on January 31. Provide the journal entry on January 31 when the cash was received.

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Definitions:

Target Capital Structure

The ideal mix of debt, preferred stock, and common equity that a company aims to hold to minimize its cost of capital.

Forecasted Net Income

An estimated calculation of a company's earnings after all expenses and taxes have been subtracted from revenue for a given future period.

Total Dividends

The sum of all dividend payments made to shareholders for a particular period, typically a fiscal year.

Retained Earnings

Earnings accumulated by a company thus far, minus any shareholder dividends or distributions already issued.