S3-13. (Learning Objective 3: Adjust the accounts for accrued and unearned revenue)Dexter, Inc., collects cash from customers in advance and from other customers after the sale.Journalize the following transactions for Dexter:a. Accrued revenue. Some customers pay Dexter after Dexter has performed the servicefor the customer. During 2018, Dexter performed services for $22,000 on account andlater received cash of $9,000 on account from these customers.b. Unearned revenue. A few customers pay Dexter in advance, and Dexter later performsthe service for the customer. During 2018, Dexter collected $4,500 cash in advance andlater earned $3,000 of this amount.

Question

S3-13. (Learning Objective 3: Adjust the accounts for accrued and unearned revenue)
Dexter, Inc., collects cash from customers in advance and from other customers after the sale.
Journalize the following transactions for Dexter:
a. Accrued revenue. Some customers pay Dexter after Dexter has performed the service
for the customer. During 2018, Dexter performed services for $22,000 on account and
later received cash of $9,000 on account from these customers.
b. Unearned revenue. A few customers pay Dexter in advance, and Dexter later performs
the service for the customer. During 2018, Dexter collected $4,500 cash in advance and
later earned $3,000 of this amount.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Journal and Ledger Balance

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Jeff Heun, president of Pina Always, agrees to construct a concrete cart path at Dakota Golf Club. P...

A: Transaction price:   Transaction price is the amount of consideration that is estimated by the compa...

Q: For each of the following independent situations, prepare journal entries to record the initial tran...

A: a. Hockey Helpers paid $4,000 cash on September 30 to rent an arena for the months of October and No...

Q: A company has a profit margin of 10% and reports net sales of $4,000,000 and average total assets of...

A: Return on assets = Net income / Average total assets where, Average total assets = (Beginning total ...

Q: Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober 31. Majest...

A: Given is: Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober ...

Q: Biloxi Gifts uses sales journal, purchases journal, cash receipts journal, cash payments journal, an...

A: Given: Purchase of merchandise on credit = $ 2,600 Contribution to automobile = $ 17000 Sold merchan...

Q: During February, $76,890 was paid to creditors on account, and purchases on account were $98,420. As...

A: The term creditors on account referred to the accounts payable of the company.  Payment to creditors...

Q: Bonds with an 8% stated interest rate were issued when the market rate of interest was 5%.This bond ...

A: Given is: Bonds with an 8% stated interest rate were issued when the market rate of interest was 5%.

Q: For each of the following (1) identify the type of account as an asset, liability, equity, revenue, ...

A: We have to identify type of account, identify normal balance of account and to enter debit or credit...

Q: After several months of planning, Jasmine Worthy started a haircutting business called Expressions. ...

A: Click to see the answer

Q: Classify each of the following accounting practices as conservative or aggressive. 1. Increase the a...

A: Click to see the answer

Q: 1. a) Differentiate vesting sick leave and non-vesting sick leave. b) Provide two examples of long-t...

A: Hello, since the student has posted multiple requirements, only the first one is answerable. Thank y...

Q: A start-up company often engages in the following transactions during its first year of operations. ...

A: Investing activities:   Investing activities refer to the activities carried out by a company for a...

Q: On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides, is...

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from ...

Q: Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR),...

A: Accrued expenses are those expenses which are due for the period but not paid in the same financial ...

Q: What alternative procedures should be applied to accounts that do not return confirmations?

A: Confirmation of accounts receivable:  When the auditor has examined the documents of the clients the...

Q: NewTech purchases computer equipment for $154,000 to use in operating activities for the next four y...

A: Given information is: New Tech purchases computer equipment for $154,000 to use in operating activit...

Q: Identify significant accounts and relevantassertions related to the finance andinvestment cycle.

A: Management Assertion:   Management assertion refers to the claims made by the management assuring a...

Q: Indicate whether a debit or credit decreases the normal balance of each of the following accounts. S...

A: As per the three golden rules of accounting a) In case of real accounts-We need to debit what comes ...

Q: How to determine the percentage by which operating income can increase if the entire R&D expendi...

A: Operating income is income of business from its normal operations  Percentage Change = (New Value - ...

Q: Bankers who are processing loan applications from companies seeking large loans willprobably ask for...

A: Given case is: Bankers who are processing loan applications from companies seeking large loans willp...

Q: Which of the following is NOT a task performed in the audit planning phase? a. reviewing an organiza...

A: In audit planning phase, some tasks are performed: Reviewing an organization’s policies and practic...

Q: Why are some managers motivated to manipulate amounts reported in the financial statements?

A: Financial statements are prepared at the end of the year to analyse the financial position and cash ...

Q: Below are approximate amounts related to balance sheet information reported by five companies in pre...

A: Hi student Since there are multiple subparts, we will answer only first three subparts. 

Q: Rosalind Company reported revenues of $111,500, expenses of $92,545, and net income of $18,955 for t...

A: Return on assets = Net income / Average Total assets where, Average Total assets = (Beginning Total ...

Q: Sunland Inc. began operations in January 2018 and reported the following results for each of its 3 y...

A: Book value of common stock: It is the face value of common stock available to the shareholders.

Q: Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid r...

A: Cash Method: The cash method is an accounting system that records revenue when actual cash is receiv...

Q: The income statements for Galaxy Tennis for the years ending December 31, 2021 and 2020, are provide...

A: Income statement: The financial statement which reports revenues and expenses from business operatio...

Q: Briefly describe record counts, batch totals, and hash totals. What types of errors in input wouldea...

A: Input controls: It is created to provide reasonable guarantee of received data for processing by the...

Q: Damon Company receives its monthly bank statement, which reports a balance of $2,000. After comparin...

A: Deposits in transit: Deposit in transit means the money received by a company and recorded in the co...

Q: Identify the following as intangible assets (IA), natural resources (NR), or some other asset (O). S...

A: Salt mine is a type of natural resources. 

Q: The balance sheets for Plasma Screens Corporation, along with additional information, are provided b...

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for ...

Q: Sales Total $200.000 when variable costs total $150,000 and fixed costs total $30,000, then breakeve...

A: Given information is: Sales = $200,000 Variable cost = $150,000 Fixed cost = $30,000

Q: . A company with net credit sales of $960,000, beginning net receivables of $70,000, andending net r...

A: Calculate accounts receivable turnover: Accounts receivable turnover = $960,000 / ($70,000 +$90,000)...

Q: Sales are $2.6 million in 2020, $2.7 million in 2021, and $2.5 million in 2022. What is the percenta...

A: Given information is: Sales in 2020 = $2.6 million Sales in 2021 = $2.7 million Sales in 2022 = $2.5...

Q: At the beginning of the month, supplies were $5,000. During the month, $7,000 ofsupplies were purcha...

A: The adjusting entries with respective of supplies would be to account for the supplies expenses and ...

Q: Confirmation of Trade Accounts Receivable. L. King, CPA, is auditing the financial statements of Cyc...

A: Hello, since your question has multiple parts we will solve the first question for you. If you want ...

Q: At the beginning of July, CD City has a balance in inventory of $3,400. The following transactions o...

A: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains...

Q: Foxburo Company expects to pay a $2.34 per share cash dividend this year on its common stock. The cu...

A: Cash dividend: The amount of cash provided by a corporation out of its distributable profits to its ...

Q: What is the ethical value of applying the Fraud Triangle to assess the risk of material misstatement...

A: Fraud Triangle:   A fraud triangle refers to a framework that is used in auditing to explain the mot...

Q: Analyze the interrelationships among the four financial statements and enter the missing information...

A: Income statement shows revenue earned less the expenses incurred by a business over a period of time...

Q: indicate whether the company has entered into a finance lease oran operating lease. The present valu...

A:    

Q: Taryn would like to open a new business as an interior designer, to funds her ambition she sold some...

A: A capital gain tax refers to the tax levied on the profits realized from the sale of items other tha...