Ask Question
BusinessBusiness
29 December, 21:38

Jack's Snow Removal Company received a cash advance of exist6,000 on December 1, 2016 to provide services during the months of December, January, and February. The 2016 year - end adjustment to recognize the partial expiration of the contract will increase assets by exist2,000 decrease in liability by exist2,000 increase liabilities by exist2,000 increase assets by exist2,000 and increase equity by exist2,000 Using the same facts as question 4, Revenue will: Increase, B Decrease. C, Stay the same. D, increase by the same amount that liabilities will increase. Which of the following is increased with a debit?

+5
Answers (2)
  1. 29 December, 22:13
    0
    will increase assets by exist2,000 decrease in liability by exist2,000

    Revenue will: Increase

    Explanation:

    will increase assets by exist2,000 decrease in liability by exist2,000

    For example if we have an unearned revenue of $ 6000 and we provide services of $ 2000 then the liability will decrease by $ 2000 and income will be charged and hence increased. Unearned income is a liability and not an income. When it is earned the liability is decreased and income is increased

    Revenue will: Increase,

    Cash is increased with a debit
  2. 29 December, 23:19
    0
    liabilities will decrease by $2,000 revenue will increase by $2,000 assets will remain the same

    Explanation:

    The journal entry that records this transaction is:

    Dr Unearned revenue 2,000

    Cr Sales revenue 2,000

    Unearned revenue is a liability account with a debit balance and since it decreases, it must be debited. Sales revenue is an equity that also has a debit balance. In this transaction no assets were affected.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Jack's Snow Removal Company received a cash advance of exist6,000 on December 1, 2016 to provide services during the months of December, ...” 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
You Might be Interested in
Bale Co. incurred $100,000 of acquisition costs related to the purchase of the net assets of Dixon Co. The $100,000 should be: A. Allocated on a pro rata basis to the nonmonetary assets acquired. B.
Answers (1)
A low-cost provider strategy can defeat a differentiation strategy when A. customers are basically satisfied and don't think extra attributes are worth a higher price features. B.
Answers (1)
Scuba Diving. Marcy invented a new type of mask for scuba divers that was not subject to fogging. She agrees to allow Jenny to manufacture and sell the mask. She receives a sum of money for every mask that Jenny sells.
Answers (1)
Swifty Corporation provides security services. Selected transactions for Swifty Corporation are presented below. Oct. 1Issued common stock in exchange for $77,900 cash from investors. 2Hired part-time security consultant.
Answers (1)
You've written a check to Goodwill Supply, and the check has been lost. What should you do? A. Stop payment on the first check; then write a second one. B. Send a counter check to Goodwill. C. Write another check immediately. D.
Answers (1)
New Questions in Business
Suppose the target rate of unemployment is 5 percent but the actual rate of unemployment is 4 percent. Given this information, which of the following policies is most appropriate according to the AS/AD model? A. A tax cut. B.
Answers (2)
Marcus Nurseries Inc.'s 2005 balance sheet showed total common equity of $2,050,000, which included $1,750,000 of retained earnings. The company had 100,000 shares of stock outstanding which sold at a price of $57.25 per share.
Answers (1)
Describe how you will operate your business in terms of your involvement
Answers (1)
A person wishing to manufacture and sell a product that another holds the patent on
Answers (1)
Which of the following is included in GDP? Group of answer choices revenue from the sale of a three-year old car the receipts from a sale of land the fees charged for a stock broker's services the value of lawn care service provided by a
Answers (1)
Home » Business » Jack's Snow Removal Company received a cash advance of exist6,000 on December 1, 2016 to provide services during the months of December, January, and February.
Sign Up Forgot Password?