On December 20, a company agrees to perform 30 days of consulting services for a client at a rate of $1,020 per day, with payment to be received on January 19, at the end of the 30 days. a. As of December 31, the company has earned (but not yet recorded) 11 days of the 30-day contract. Prepare the required December 31 adjusting entry. b. On January 19, the company received $30,600 as full payment for the work completed in December and January. Prepare the journal entry to record the cash receipt. The company does not prepare reversing entries.
On December 20, a company agrees to perform 30 days of consulting services for a client at a rate of $1,020 per day, with payment to be received on January 19, at the end of the 30 days. a. As of December 31, the company has earned (but not yet recorded) 11 days of the 30-day contract. Prepare the required December 31 adjusting entry. b. On January 19, the company received $30,600 as full payment for the work completed in December and January. Prepare the journal entry to record the cash receipt. The company does not prepare reversing entries.
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 6SEA
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Question
![On December 20, a company agrees to perform 30 days of consulting services for a client at a rate of $1,020 per day, with payment to
be received on January 19, at the end of the 30 days.
a. As of December 31, the company has earned (but not yet recorded) 11 days of the 30-day contract. Prepare the required
December 31 adjusting entry.
b. On January 19, the company received $30,600 as full payment for the work completed in December and January. Prepare the
journal entry to record the cash receipt. The company does not prepare reversing entries.
View transaction list
Journal entry worksheet
1
As of December 31, the company has earned (but not yet recorded) 11 days of
the 30-day contract. Prepare the adjusting entry for revenue earned.
Note: Enter debits before credits.
Transaction
a.
2
Record entry
General Journal
Clear entry
Debit
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8022ae08-ae3d-4b66-9a05-74cc81c50494%2F4c97b800-fe77-4056-a9da-8e4b30684dd1%2F5fkl6yd_processed.png&w=3840&q=75)
Transcribed Image Text:On December 20, a company agrees to perform 30 days of consulting services for a client at a rate of $1,020 per day, with payment to
be received on January 19, at the end of the 30 days.
a. As of December 31, the company has earned (but not yet recorded) 11 days of the 30-day contract. Prepare the required
December 31 adjusting entry.
b. On January 19, the company received $30,600 as full payment for the work completed in December and January. Prepare the
journal entry to record the cash receipt. The company does not prepare reversing entries.
View transaction list
Journal entry worksheet
1
As of December 31, the company has earned (but not yet recorded) 11 days of
the 30-day contract. Prepare the adjusting entry for revenue earned.
Note: Enter debits before credits.
Transaction
a.
2
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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