Ask Question
BusinessBusiness
22 June, 19:29

Journalizing reversing entries

Ocean Breeze Associates accrued $8,500 of Service Revenue on December 31. Ocean Breeze Associates received $14,500 on January 15, including the accrued revenue recorded on December 31.

Requirements

Record the adjusting entry to accrue Service Revenue.

Record the reversing entry.

Journalize the cash receipt.

+1
Answers (1)
  1. 22 June, 19:48
    0
    Dr. Cr.

    Adjusting Entry

    December 31

    Account Receivable $8,500

    Revenue $8,500

    Reversing Entry

    January 1

    Revenue $8,500

    Account Receivable $8,500

    Cash Receipt

    January 15

    Cash $14,500

    Revenue $14,500

    Explanation:

    On December 31 the accrued revenue is recording to comply with the accrual principle by debiting account receivable and crediting revenue account.

    A reverse entry of accrued revenue was made on January 1 to eliminate its effect. it does not mean that company has negative revenue it is made to adjust the the cash receipt event of the transaction when its effect will be nil by a credit entry with.

    Cash received on January 15 is recorded against the revenue.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Journalizing reversing entries Ocean Breeze Associates accrued $8,500 of Service Revenue on December 31. Ocean Breeze Associates received ...” 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
During February 2015 its first month of operations, the stockholders of Ariel Pink Enterprises invested cash of $50,000. Ariel had cash revenues of $10,000 and paid expenses of $14,000.
Answers (1)
When firms are neither entering nor exiting a perfectly competitive market, a. total revenue must equal total cost for each firm. b. economic profits must be zero. c. price must equal the minimum of marginal cost for each firm. d.
Answers (1)
Which function can be used to find the date of the last payment made on a customer account? average count order maximum
Answers (1)
A five-cent deposit on beer bottles a. provides a positive incentive because it rewards people for recycling. b. provides a negative incentive because it punishes people who do not recycle. c.
Answers (1)
Which of the following activities does NOT belong to the controlling phase of project management? A. monitor resources, costs, quality, and budgets B. revise plans C. shift resources D. define the project
Answers (1)
New Questions in Business
Which of the following is a positive economic statement? A. The government should implement a national consumption tax. B. The standard of living in the United States is too low. C. The U. S.
Answers (1)
Rachel is working on a project that technically allows three activities to be done at the same time. if they were to be implemented at the same time, she would need 5 contractors in order for the activities to be completed on time.
Answers (1)
In one to three sentences, describe reliable financial information.
Answers (1)
When using statistics to support a speech, it is best to do all of the following except: a. use statistics to quantify ideas. b. use statistics to explain. c. present statistics with charts or graphs so it is easier for listeners to grasp d.
Answers (1)
While waiting in line to buy two tacos at 75 cents each, and a medium drink for 80 cents, Emma notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50.
Answers (1)
Home » Business » Journalizing reversing entries Ocean Breeze Associates accrued $8,500 of Service Revenue on December 31. Ocean Breeze Associates received $14,500 on January 15, including the accrued revenue recorded on December 31.
Sign Up Forgot Password?