4. The unadjusted trial balance showed on December 31, 2018. Subscription Revenue of P390000. Amagazine subscription costs P100 monthly and is payable in advance either quarterly or semi-anually.Deliveries are made on or before the 15th of the month. A review of the subcription contracts revealed thefollowing.No. of QuartelySubscription DateSept. 1Oct. 1Nov. 1No. of Semi-Annual SubcriptionSubcriptions100100200100300150Required:a. Give the adjusting entry on December 31, 2018b. Set up T accounts Subscription Income (start with the balance of P390000) and Unearned SubscriptionIncome (start with zero balance). Post the adjusting entry and financial statements determine the adjustedbalances that should be presented in the

Unearned Subscription Revenue is the amount received by the business enterprises for the magazines…

4. The unadjusted trial balance showed on December 31, 2018. Subscription Revenue of P390000. A magazine subscription costs P100 monthly and is payable in advance either quarterly or semi-anually. Deliveries are made on or before the 15th of the month. A review of the subcription contracts revealed the following. Subscriptio n Date Sept. 1 Oct. 1 Nov. 1 No. of Quartely Subcriptions 100 No. of Semi-Annual Subcription 100 200 100 300 150 Required: a. Give the adjusting entry on December 31, 2018 b. Set up T accounts Subscription Income (start with the balance of P390000) and Unearned Subscription Income (start with zero balance). Post the adjusting entry and financial statements determine the adjusted balances that should be presented in the

4. The unadjusted trial balance showed on December 31, 2018. Subscription Revenue of P390000. A magazine subscription costs P100 monthly and is payable in advance either quarterly or semi-anually. Deliveries are made on or before the 15th of the month. A review of the subcription contracts revealed the following. Subscriptio n Date Sept. 1 Oct. 1 Nov. 1 No. of Quartely Subcriptions 100 No. of Semi-Annual Subcription 100 200 100 300 150 Required: a. Give the adjusting entry on December 31, 2018 b. Set up T accounts Subscription Income (start with the balance of P390000) and Unearned Subscription Income (start with zero balance). Post the adjusting entry and financial statements determine the adjusted balances that should be presented in the

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 8EB: Following is the unadjusted trial balance for Pens Unlimited on December 31, 2017. You are also...

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Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1, 2019, to provide plant watering services for Lola Inc.s office buildings. Jennifers received 4 months' service fees in advance on signing the contract. Required: 1. Prepare Jennifers journal entry to record the cash receipt for the first 4 months. 2. Prepare Jennifers adjusting entry at December 31, 2019. 3. CONCEPTUAL CONNECTION How would the advance payment (account(s) and amounts(s)] be reported in Jennifers December 31, 2019, balance sheet? How would the advance payment [account(s) and amount(s)] be reported in Lolas December 31, 2019, balance sheet?
Service Revenue Softball Magazine Company received advance payments of $75,000 from customers during 2019. At December 31, 2019, $20,000 of the advance payments still had not been earned. Required: After the adjustments are recorded and posted at December 31, 2019, calculate what the balances will be in the Unearned Magazine Revenue and Magazine Revenue accounts. Use the following information for Cornerstone Exercises 5-23 and 5-24: Bolton sold a customer service contract with a price of S37 000 to Sammys Wholesale Company. Bolton offered terms of 1/10, n/30 and expects Sammy to pay within the discount period.
On October 1, 2019, Grahams WeedFeed Inc. signs a contract to maintain the grounds for BigData Corp. The contract ends on March 31, 2020, and has a monthly payment of 3,200. The contract does not include any stipulations for additional periods. On June 1, Grahams WeedFeed and BigData sign a new 12-month contract that is retroactive to April 1, 2020. The monthly fee for the new contract is 4,000 per month and is also retroactive to April 1, 2020. During April and May of 2020, while the new contract was being negotiated, Grahams Weed Feed continued to maintain the grounds, and BigData continued to pay 3,200 per month. BigData was satisfied with Grahams WeedFeeds performance, and the only issue during negotiations was the monthly fee. Required: Determine if a valid contract exists between Grahams WeedFeed and BigData during April and May 2020.
In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of S4,500 for services to be performed in January 2020. Swanstrom also receives the December utility bill for S600 but does not pay this bill until 2020. For 2019, under the accrual basis of accounting, Swanstrom would recognize: a. $8,000 of revenue and $600 of expense. b. $8,000 of revenue and $0 of expense. c. $3,500 of revenue and $600 of expense. d. $3,500 Of revenue and $0 of expense.
Following is the unadjusted trial balance for Pens Unlimited on December 31, 2017. You are also given the following supplemental information: A pending lawsuit, claiming $4,200 in damages, is considered likely to favor the plaintiff and can be reasonably estimated. Pens Unlimited believes a customer may win a lawsuit for $5,000 in damages, but the outcome is only reasonably possible to occur. Pens Unlimited records warranty estimates on the basis of 2% of annual sales revenue. A. Using the unadjusted trial balance and supplemental information for Pens Unlimited, construct an income statement for the year ended December 31, 2017. Pay particular attention to expenses resulting from contingencies. B. Construct a balance sheet, for December 31, 2017, from the given unadjusted trial balance, supplemental information, and income statement for Pens Unlimited. Pay particular attention to contingent liabilities. C. Prepare any necessary contingent liability note disclosures for Pens Unlimited. Only give one to three sentences for each contingency note disclosure.
4. the unadjusted trial balance showed on December 31, 2018 Subscription Revenue of P390,000. A magazine Subscription costs P100 monthly and is payable in advance either quarterly or semi-annually. Deliveries are made on or before the 15th of the month. A review of the subscription contracts revealed the following. Subscription Date No. of Quarterly Subscription No. of Semi-Annual Subscription Sep-01 100 100 Oct-01 200 100 Nov-01 300 150 a. Give the adjusting entry on December 31, 2018 b. Set up T accounts for Subscription Income (start with the balance of P390) and Unearned Subscription Income (start with zero balance). Post the adjusting entry and determined the adjusted balances that should be presented in the financial statement.
On October 10, 2017, Executor Co. entered into a contractwith Belisle Inc. to transfer Executor’s specialty products(sales value of $10,000, cost of $6,500) on December 15,2017. Belisle agrees to make a payment of $5,000 upondelivery and signs a promissory note to pay the remainingbalance on January 15, 2018. What entries does Executormake in 2017 on this contract? Ignore time value ofmoney considerations.
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