Kibitz Fitness received $30,000 from customers on August 1, 2013. These payments were advance payments of yearly membership dues. Required: At December 31, 2013, calculate what the balances in the Unearned Service Revenue and Service Revenue accounts will be. Unearned Service Revenue $ Service Revenue $

Kibitz Fitness received $30,000 from customers on August 1, 2013. These payments were advance payments of yearly membership dues. Required: At December 31, 2013, calculate what the balances in the Unearned Service Revenue and Service Revenue accounts will be. Unearned Service Revenue $ Service Revenue $

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....

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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.
Service Revenue Kibitz Fitness received $24,000 from customers on August 1, 2022. These payments were advance payments of yearly membership dues. Required: At December 31, 2022, calculate what the balances in the Unearned Service Revenue and Service Revenue accounts will be.
On 2020 September 1, North Sports Club., received a total of USD 120,000 as payment in advance for one-year fees from club members. A liability account was credited to record this cash receipt. By the end of the year, one-third of the membership fees received in advance had been earned. Give the entries to adjust the accounts at December 31, assuming annual financial statements are adjusted and prepared at year-end. Group of answer choices Debit Unearned membership fees 40,000, credit membership fee revenue 40,000 Debit Membership fee revenue 10,000, credit Unearned membership fees 10,000 Debit Membership fee revenue 40,000, credit Unearned membership fees 40,000 Debit Unearned membership fees 10,000, credit membership fee revenue 10,000
In December 2019, Evergreen, a cleaning company, is performing $ 1,500 of service for customers who will not pay until February 2020. Record the entries when service is performed and cash is received Evergreen Cleaning Services Company has accrued a salary of $ 15,000 on 30 December 2019, payable on 2 January 2020.Record entries when salaries are accrued and salaries are paid On 15 December 2019, Evergreen Cleaning Services Company received a total of $ 2,000 worth of utility bills. The company will pay the bill on 2 January 2020. Record the entries for 15 December 2019 and 2 January 2020 On 31 December 2019, Evergreen Cleaning Services Company rendered $15,000 worth of services to a client. The customer will pay the amount on 15 January 2020. Make…
Carmel of Fargo, North Dakota, publishes a monthly magazine featuring local restaurant reviews and upcoming social, cultural, and sporting events. Subscribers pay for subscriptions either one year or two years in advance. Cash received from subscribers is credited to an account called Magazine Subscriptions Received in Advance. On December 31, 2014, the end of the company’s fiscal year, the balance of this account is $840,000. Expiration of subscriptions revenue is as follows. During 2014- $175,000 During 201- $5415,000 During 2016- $250,000 Prepare the adjusting entry for December 31, 2014.
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Designer Architects had the following additional information at its November 30, 2020, year-end: The Unearned Revenue account showed a balance of $73,000, which represented four months of services paid in advance by a client for services beginning on October 15, 2020. The payroll register showed the following unpaid amounts as at November 30: EI*Premium IncomeTaxes* CPP* TotalDeductions NetPayable OfficeSalaries SalesSalaries 190.41** 1,400.00 293.98** 1,884.39 4,615.61 3,600.00 2,900.00 *These values are based on assumed payroll deductions.**The employer's portions of EI and CPP are 1.4 times and 1 times the employees' portion, respectively. The November utility bill in the amount of $3,260 was unpaid and unrecorded at November 30. Required:Prepare the appropriate entries at year-end based on the above information: (Round the final answers to 2 decimal places.) Analysis Component:If the above entries are not recorded on November 30, 2020, what is the effect on the…
The following transactions occurred during December 31, 2021, for the Microchip Company. On October 1, 2021, Microchip lent $90,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022. On November 1, 2021, the company paid its landlord $6,000 representing rent for the months of November through January. Prepaid rent was debited. On August 1, 2021, collected $12,000 in advance rent from another company that is renting a portion of Microchip’s factory. The $12,000 represents one year’s rent and the entire amount was credited to deferred rent revenue. Depreciation on office equipment is $4,500 for the year. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,000. The company records vacation pay as salaries expense. Microchip began the year with $2,000 in its asset account, supplies. During the year, $6,500 in supplies were purchased and debited to supplies. At year-end, supplies costing…
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In addition to the above accounts, VGC’s chart of accounts includes the following: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilities Expense. The January transactions are shown below: Received $50,000 cash from customers on 1/1 for subscriptions that had already been earned in 2017. Purchased 10 new computer servers for $33,500 on 1/2; paid $10,000 cash and signed a three-year note for the remainder owed. Paid $10,000 for an Internet advertisement run on 1/3. On January 4, purchased and received $3,000 of supplies on account. Received $170,000 cash on 1/5 from customers for service revenue earned in January. Paid $3,000 cash to a supplier on January 6. On January 7, sold 15,000 subscriptions at $15 each for services provided during January. Half was collected in cash and half was sold on account. Paid $378,000 in wages to employees on 1/30 for work done in January. On January 31, received an electric and gas utility bill for $5,350 for January utility…
Classic Customs began operations on December 1, 2020. In setting up the bookkeeping procedures, the company decided to debit expense accounts when the company prepays its expenses and to credit revenue accounts when customers pay for services in advance. Supplies were purchased on December 1 for $8,000. The company prepaid insurance premiums of $3,200 on December 2. On December 15, the company received an advance payment of $16,100 from one customer for re-modeling work. By counting the supplies on December 31, Classic Customs determined that $1,450 was on hand. An analysis of the insurance policies in effect on December 31 showed that $800 of insurance coverage had expired. As of December 31, it was determined that $8,500 of the amount received in advance on December 15 had been earned. Prepare journal entries for items (a) through (c) and adjusting entries as of December 31, 2020, for items (d) through (f).