Ask Question
BusinessBusiness
23 March, 21:49

Which journal entry reflects the adjusting entry needed on December 31?:In November, BOC received a $5,000 cash deposit from a customer for custom-build goods that will be delivered in January (BOC recorded an entry for this $5,000 in November). Now, it is December 31, the end of the fiscal year. Dr. Unearned Revenue 5,000Cr. Inventory 5,000No entry needed. Dr. Cash 5,000Cr. Revenue 5,000Dr. Advances from Customers 5,000Cr. Revenue 5,000Dr. Unearned Revenue 5,000Cr. Revenue 5,000

+2
Answers (1)
  1. 23 March, 23:15
    0
    No adjusting entry required

    Explanation:

    When the contract was formed and advance was received the company must had recorded the following entry:

    Dr Cash Account $5000

    Cr Unearned Revenue $5000

    Now it is the year end and till now the goods are not delivered which means advance that was received is still our unearned revenue So no further entry is required until the delivery of the goods ordered to the customer.

    Correct entry is "No adjusting entry required"
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which journal entry reflects the adjusting entry needed on December 31?:In November, BOC received a $5,000 cash deposit from a customer for ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Estimated Returns Inventory is a. an asset account reported with Inventory on the balance sheet. b. an owner's equity account increasing equity. c. a liability account with a normal credit balance. d.
Answers (1)
The following is an extract of Aster Inc.'s balances: Items Amount ($) Opening inventory 20,000 Closing inventory 10,000 Sales 50,000 What is Aster's return-on-assets ratio? A. 2 B. 4 C. 3 D. 5
Answers (1)
The franchisor is a/an ...
Answers (2)
The payment of a cash dividend would be classified as a (n): a. operating activity. b. investing activity. c. financing activity. d. significant noncash activity.
Answers (1)
A company reported monthly revenues of $ 315,000 and expenses of $ 100,000. What is the result of operations for the month? In order to calculate the operations for the month we must compute net income or net loss.
Answers (1)
New Questions in Business
Explain what is meant by market research.
Answers (1)
Jean, a restaurant critic, publishes a review in a national daily that the sandwiches served at his friend's deli are usually not fresh. Tom, the owner of the deli, notices a significant decrease in customers after the review gets published.
Answers (1)
Why did the Soviet Union experience many surpluses and shortfalls? A) The labor force wasn't well educated B) The cold climate made farming hard C) Central planners could not manage every detail D) The country depended on imports to obtain resources.
Answers (1)
A hospitality operation has sales revenue of $462,000 with variable cost averaging 44%. Fixed costs are $188,000. The owner wants a net income after tax of $50,400 based on a tax rate of 28%. a.
Answers (1)
True or false fdr was eager to use deficit spending to end the economic crisis.
Answers (1)
Home » Business » Which journal entry reflects the adjusting entry needed on December 31?:In November, BOC received a $5,000 cash deposit from a customer for custom-build goods that will be delivered in January (BOC recorded an entry for this $5,000 in November).
Sign Up Forgot Password?