Assuming the entity received a cash worth of 50,000, this 50,000 is from the customer who advances payment for the service to be render next month. The proper credit for this transaction is: a.) Accounts Payable b.) Unearned Revenue c.) Owner’s Equity d.) Service Revenue

Assuming the entity received a cash worth of 50,000, this 50,000 is from the customer who advances payment for the service to be render next month. The proper credit for this transaction is: a.) Accounts Payable b.) Unearned Revenue c.) Owner’s Equity d.) Service Revenue

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 3EA: For each of the following accounts, identify whether it would be closed at year-end (yes or no) and...

See similar textbooks

Related questions

Q: uring 2018, the following events occurred for Parker Company Parker receives $36,000 cash in…

A: Accounting Equation: It is a statement where total assets are equal to the sum of total liabilities…

Q: Which of the following accounts is increased by a credit? A. Cash B. Accounts receivable C. Accounts…

A: Debits and Credits: The transactions of the company will affect the account balances either by…

Q: Zuhoor Muscat Company reported the following transactions during the year 2020: collected RO 45,000…

A: Increase (decrease) in net income for 2020 = Cash collected from service provided in 2020 + Service…

Q: On March 1, a company received P3,000 cash from a client as an advance for 12 months’ worth of…

A: Adjusting journal entry: To record any unrecognized income or expenses for the period company made…

Q: The company performs consulting services for a client for an agreed upon fee of $100,000. The…

A: >Accounting equation states that Total Assets = Total Liabilities + Total equity. >This…

Q: From the ledger balances given below, prepare a trial balance for the Marigold Corp. at June 30,…

A: Trial balance for Marigold corp. is as follows:

Q: Show the effects of each transaction on the accounting equation by indicating under the proper…

A: As per the Accounting Equation,Assets =Liabilities +Shareholder's Equity

Q: The trial balance of Harper Service Center on March 1, 2019, lists the entity’s assets, liabilities,…

A: Accounts Receivables-:Accounts receivable is the proportion of money due to a corporation for…

Q: Kelly Pitney began her consulting business, Kelly Consulting, on 1 April 2019. During May, Kelly…

A: Journal entries indicate the reporting of the day to day business operating transactions related to…

Q: On April 9,2021, X Company performed services for $1,700 on account. The entry to record this…

A: Answer 1 Entry to Record Services Performed on A/c DATE PARTICULAR DEBIT CREDIT…

Q: recelved

A: Ans. In accrual system of accounting the payments related to previous years and future years should…

Q: For each transaction below, calculate the amount of revenue to be recognized in June using…

A: As per cash basis of accounting, we should record the transaction only when corresponding cash is…

Q: I can't understand why I inputed the wrong information for owner's equity.

A: Initially, determine net income.

Q: Omer provides the following data of his company Cargowings Pvt. ltd. for the month of December 2020.…

A: According to the above question, the following should be the…

Q: On January 10, 2019, provides 7,500 in services to a customer who pays 2,000 cash and asks to be…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: Zuhoor Muscat Company reported the following transactions during the year 2020: collected RO 45,000…

A: Increase (decrease) in net income for 2020 = Cash collected from service provided in 2020 + Service…

Q: Fees for services provided are billed to a customer during 20Y6. The customer remits the amount owed…

A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…

Q: A company receives a $50,000 cash deposit from a customer on October 15 but will not deliver the…

A: Solution:- Introduction:- The following basic information as follows:- company receives a $50,000,…

Q: During 2018, the following events occurred for Parker Company Parker receives $31,200 cash in…

A: March 1, 2018 to Dec. 31 2018 = 10 months Revenue recognized = $31,200*10/12 Revenue recognized =…

Q: For each transaction below, calculate the amount of revenue to be recognized in the current period…

A: Accrual accounting: The method of accounting which recognizes revenues when it is earned though not…

Q: Transaction: On August 1, the business, Design Thinking Ltd, provided consulting services for a…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: At December 31, 2020, Ms. Mary Cruz, a sole proprietor engaged in service business has the following…

A: Adjusted trial balance: It is worksheet which shows all the accounts an organization has like…

Q: Listed below are selected transactions completed by Ridge Company during March of the current year.…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Rebel Technology maintains its records using cash-basis accounting. During the year, the company…

A: In accounting, there are lots of methods of accounting, but the most common method is: Cash Basis…

Q: During may, byron bui's business performed services for a specific custmor for which the fees was…

A: Journal: Recording of a business transactions in a chronological order.

Q: On December 31, Rivera Co. had the following list of accounts and their respective annual balances.…

A: Net income=Consulting revenue-Entertainment expense+Rent expense+Supplies expense+Utilities…

Q: Mary Smith opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $ 5,000,…

A: The owners' equity statement represents the equity for the shareholders.

Q: Assuming the entity received a cash worth of 80,000, this 80,000 is from the customer who advances…

A: In the given question advance has been received on account of service that are to be rendered in…

Q: A company receives payment from one of its customers on August 5 for services performed on July 21.…

A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…

Q: The following selected transactions were completed by Roberto Orcajada Delivery Service during July…

A: As per the accounting equation, the total assets of the firm will always be equal to the sum of…

Q: A service enterprise keeps its accounting records on a cash basis. During the recent year, the…

A: Increase (decrease) in Accounts receivable = Ending Accounts receivable - Beginning Accounts…

Q: Limerick Company maintained the accounting records using the cash basis of accounting. During the…

A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…

Q: On January 1, Entity A invested cash of P 50,000. On January 5, the business performed services…

A: Formula: Service revenue = Total revenue x cash collection %

Q: Silo company had the following transactions during Dec. 2018. Earned services revenue on account…

A: Under the Cash Basis of Accounting, revenue is considered only when the actual amount is received…

Q: For each transaction below, calculate the amount of revenue to be recognized in the current period…

A: Here in this question we are require to calculate the revenue that needs to be recorded under…

Q: Listed below are selected transactions completed by Ridge Company during March of the current year.…

A: Revenue Journal - Revenue Journal includes revenue-related journal and recorded. Cash Receipt…

Q: Presented here are the accounts of KPMS Delivery for the year ended December 31, 2018. Owner…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: Terrapin Company engages in the following external transactions for November.1. Purchase equipment…

Q: Required: For each transaction, determine the amount of revenue or expense, if any, that is recorded…

A: Revenue can be defined as the amount earned from daily business transactions, sale of goods and…

Q: For the month of September 2021, BW Travel and Tours had the following transaction. sep1-…

A: Journal Entries - Journal Entries are used to record transactions in journal form. One effect is…

Q: On January 1, Entity A invested cash of P 50,000. On January 5, the business performed services…

A: Formula: Cash collection amount = Total sales x cash collection %

Q: Analyze the following transactions that took place in January. Determine the amount of revenue…

A: The following posting is analyzed for its correctness.

Q: The following balances were extracted from the books of AL Masa Cleaning Services at 31st December,…

A: Formula: Ending Capital = Beginning capital + Investment during the year + Profit during the year -…

Q: On Sept. 1, 2021, Christopher Abelinde establ Find six errors that were made in recording the…

A: General explanation - for every transaction, there will be debit and credit. If we pay any expenses…

Q: -A service enterprise keeps its accounting records on a cash basis. During the recent year, the…

A: Account receivable is classified as current assets. Account receivable is the amount that is due…

Q: The following transactions occurred for the Microchip Company. 1. On October 1, 2024, Microchip lent…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Question

Assuming the entity received a cash worth of 50,000, this 50,000 is from the customer who advances payment for the service to be render next month. The proper credit for this transaction is:

a.) Accounts Payable

b.) Unearned Revenue

c.) Owner’s Equity

d.) Service Revenue

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Considering the following events, determine which month the revenue or expenses would be recorded using the accounting method specified. a. Gerber Company uses the cash basis of accounting. Gerber prepays cash in May for insurance that only covers the following month, (June). b. Matthews and Dudley Attorneys uses the accrual basis of accounting. Matthews and Dudley Attorneys receives cash from customers in June for services to be performed in July. c. Eckstein Company uses the accrual basis of accounting. Eckstein prepays cash in October for rent that covers the following month, (October). d. Gerbino Company uses the cash basis of accounting. Gerbino makes a sale to a customer in February but does not expect payment until March.
Taylor Company recently purchased a piece of equipment for $2,000 which will be paid within 30 days after delivery. At what point would the event be recorded in Taylors accounting system? When Taylor signs the agreement with the seller When Taylor receives an invoice (a bill) from the setter When Taylor receives the asset from the seller When Taylor pays $2.000 cash to the seller
Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collects $8500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue for the fees? A. June, $15,000; July, $0; and August, $0 B. June, $0; July, $6,500; and August, $8,500 C. June, $8,500; July, $6,500; and August, $0 D. June, $0; July, $8,500; and August, $6,500
Identify whether each of the following transactions, which are related to revenue recognition, are accrual, deferral, or neither. A. provided legal services to client, who paid at the time of service B. received cash for legal services performed last month C. received cash from clients for future services to be provided D. provided legal services to client, to be collected next month
A business has the following transactions: A. The business is started by receiving cash from an investor in exchange for common stock $10,000. B. Rent of $1,250 is paid for the first month. C. Office supplies are purchased for $375. D. Services worth $3,450 are performed. Cash is received for half. E. Customers pay $1,250 for services to be performed next month. F. $6,000 is paid for a one year insurance policy. G. We receive 25% of the money owed by customers in D. H. A customer has placed an order for $475 of services to be done this coming week. How much total revenue does the company have?
For each of the following accounts, identify whether it would be closed at year-end (yes or no) and on which financial statement the account would be reported (Balance Sheet, Income Statement, or Retained Earnings Statement). A. Retained Earnings B. Prepaid Rent C. Rent Expense D. Rent Revenue E. Salaries Expense F. Salaries Payable G. Supplies Expense H. Unearned Rent Revenue
On July 1, a client paid an advance payment (retainer) of $10,000, to cover future legal services. During the period, the company completed $6,200 of the agreed-on services for the client. There was no beginning balance in the Unearned Revenue account for the period. Based on the information provided, make the journal entries needed to bring the balances to correct for: A. original transaction B. December 31 adjustment
On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services rendered on December 31, 20Y7. How would you record the January 24 transaction, using the accrual basis? A. Increase Cash, $5,700; decrease Fees Earned, $5,700 B. Increase Accounts Receivable, $5,700; increase Fees Earned, $5,700 C. Increase Cash, $5,700; decrease Accounts Receivable, $5,700 D. Increase Cash, $5,700; increase Fees Earned, $5,700
Discuss how each of the following transactions for Watson, International, will affect assets, liabilities, and stockholders equity, and prove the companys accounts will still be in balance. A. An investor invests an additional $25,000 into a company receiving stock in exchange. B. Services are performed for customers for a total of $4,500. Sixty percent was paid in cash, and the remaining customers asked to be billed. C. An electric bill was received for $35. Payment is due in thirty days. D. Part-time workers earned $750 and were paid. E. The electric bill in C is paid.
Prepare journal entries to record the following transactions. Create a T-account for Unearned Revenue, post any entries that affect the account, tally ending balance for the account (assume Unearned Revenue beginning balance of $12,500). A. May 1, collected an advance payment from client, $15,000 B. December 31, remaining unearned advances, $7,500
For each of the following accounts, identify whether it would be closed at year-end (yes or no) and on which financial statement the account would be reported (Balance Sheet, Income Statement, or Retained Earnings Statement). A. Accounts Payable B. Accounts Receivable C. Cash D. Dividends E. Fees Earned Revenue F. Insurance Expense G. Prepaid Insurance H. Supplies
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.