Ask Question
10 February, 19:53

18. A company is in its first month of operations. On January 15, the company receives $600 from customers who will receive 10 voice lessons ($60 per lesson). As of January 31, the company has provided 8 voice lessons. What adjusting entry would be made at the end of January? Post the adjusting entry for the scenario provided. Record the revenue for 8 voice lessons that the company has provided. The company would receive $600 from customers for 10 voice lessons ($60 per lesson).

+2
Answers (1)
  1. 10 February, 22:08
    0
    The adjusting entry at the end of January:

    Debit Unearned revenue: $480

    Credit Revenue: $480

    Explanation:

    When recceived $600 on January 15 from customer, the company must record:

    Debit Cash: $600

    Credit Unearned revenue: $600

    because all lessons are not provided by the company, the company can't recording revenue.

    On January 31, the company provided 8 lessons, so the company must recording revenue for these lesson (8x$60=$480) by adjusting entry.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “18. A company is in its first month of operations. On January 15, the company receives $600 from customers who will receive 10 voice ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers