Ask Question
BusinessBusiness
29 August, 16:15

Record journal entries for the following transactions. (a) On December 1, $18,000 was received for a service contract to be performed from December 1 through April 30. Dec. 1 (b) Assuming the work is performed evenly throughout the contract period, prepare the adjusting journal entry on December 31. Dec. 31

+5
Answers (1)
  1. 29 August, 17:10
    0
    See explanation section

    Explanation:

    (a) December 1 Cash Debit $18,000

    Unearned revenue Credit $18,000

    Note: The company received the money in advance for a contract to do during December to April. Therefore, they received cash while a liability increased due to receiving advance money.

    (b) December 31 Unearned revenue Debit $3,600

    Service revenue Credit $3,600

    Note: As the company started performing, after the completion of 1st month, i. e., December 1 to December 31, the advance money started expiring because of providing services. Moreover, as the service is performed evenly for 5 months, the 1st month's revenue = $ (18,000/5) = $3,600.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Record journal entries for the following transactions. (a) On December 1, $18,000 was received for a service contract to be performed from ...” 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
Josh bought a bond with a par value of 1,500 from company ABC. The bond pays twenty annual coupons of 90 and matures at the end of twenty years. It is bought and redeemed at par.
Answers (1)
Salesperson Sue has just completed a purchase and sale agreement with Bob, her client, in order to make an offer on a house. The agreement includes a good faith deposit of $5,000 in the form of a check, which Bob has given to Sue.
Answers (1)
Because Country A has no domestic sources of wood, it imports all its wood from wood-producing countries.
Answers (1)
An upscale hotel located in New York City wants to exceed the service expectations of all of its guests.
Answers (1)
A job search should be treated like a full time job.
Answers (1)
New Questions in Business
Smash Company has 4 comma 000 machine hours available annually to manufacture badminton racquets. The following information is available for the two different racquets produced by Smash: Pro Unit sales price $ 500 Unit variable costs $ 125 Annual
Answers (1)
When closing a direct request, you should be sure to
Answers (1)
Which payment type is best if you are trying to stick to a budget? ADebit Card BPayday Loan CCash Advance DCredit Card
Answers (1)
On January 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring annual equal payments each December 31 of $37,258.
Answers (1)
What are the three main responsibilities of a superintendent before construction can begin? A) set up the field office, organize the job site, and establish the working hours B) set up the field office, organize the job site, and clean the tools and
Answers (1)
Home » Business » Record journal entries for the following transactions. (a) On December 1, $18,000 was received for a service contract to be performed from December 1 through April 30. Dec.
Sign Up Forgot Password?