At the end of the current year, $59,500 of fees have been earned but have not been billed to clients. Required: A. Journalize the adjusting entry to record the accrued fees on December 31. Refer to the Chart of Accounts for exact wording of account titles. B. If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?
At the end of the current year, $59,500 of fees have been earned but have not been billed to clients. Required: A. Journalize the adjusting entry to record the accrued fees on December 31. Refer to the Chart of Accounts for exact wording of account titles. B. If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter6: Work Sheet And Adjusting Entries For A Service Business
Section6.4: Journalizing And Posting Adjusting Entries
Problem 1OYO
Related questions
Question
100%
At the end of the current year, $59,500 of fees have been earned but have not been billed to clients.
| Required: | |
| A. | Journalize the |
| B. | If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary? |
CHART OF ACCOUNTSGeneral Ledger
| ASSETS | |
| 11 | Cash |
| 12 | |
| 13 | Supplies |
| 14 | Prepaid Insurance |
| 15 | Land |
| 16 | Equipment |
| 17 |
| LIABILITIES | |
| 21 | Accounts Payable |
| 22 | Unearned Fees |
| 23 | Salaries Payable |
| 24 | Taxes Payable |
| EQUITY | |
| 31 | Common Stock |
| 32 | |
| 33 | Dividends |
| REVENUE | |
| 41 | Fees Earned |
| EXPENSES | |
| 51 | Advertising Expense |
| 52 | Insurance Expense |
| 53 | Rent Expense |
| 54 | Salary Expense |
| 55 | Supplies Expense |
| 56 | Utilities Expense |
| 57 | Depreciation Expense |
| 59 | Miscellaneous Expense |
Transcribed Image Text:A. Joumalize the adjusting entry to record the accrued fees on December 31. Refer to the Chart of Accounts for exact wording of account titles.
Question not attempted.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST, REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
Adjusting Entries
2
Expert Solution
Step 1
Given,
Fees receivables of $59,500
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
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.Recommended textbooks for you
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning