College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
thumb_up100%
Chapter 14, Problem 3SEA
ADJUSTMENT FOR UNEARNED REVENUES USING T ACCOUNTS Set up T accounts for Cash, Unearned Ticket Revenue, and Ticket Revenue. Post the following two transactions to the appropriate accounts, indicating each transaction by letter:
- (a) Sold 1,200 season tickets at $400 each, receiving cash of $480,000.
- (b) An end-of-period adjustment is needed to recognize that $120,000 in ticket revenue has been earned.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Up & Away Airlines has provided the following information regarding cash received for ticketsales in September and October:Cash received in September for October fl ights $500,000Cash received in October for October fl ights 300,000Cash received in October for November fl ights 400,000Apply the realization principle to determine how much revenue Up & Away Airlines should reportin its October income statement.
Do not copy
On December 1, Oren Marketing Company received $4,500 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned revenue. The adjusting entry for the year ended December 31 would include:
Mutiple Choice
a debit to Services Revenue for $3,000.
Â
a credit to Unearned Revenue for $1,500.
Â
a debit to Unearned Revenue for $2,250.
Â
a credit to Services Revenue for $3,000.
Â
a debit to Services Revenue for $4,500.
Adjustment data at December 31 follow:a. On December 15, Aurora contracted to perform services for a client receiving$2,800 in advance. Aurora recorded this receipt of cash as Unearned Revenue. Asof December 31, Aurora has completed $1,800 of the services.b. Aurora prepaid two months of rent on December 1.
Aurora used $600 of office supplies.d. Depreciation for the equipment is $700.e. Aurora received a bill for December’s online advertising, $1,000. Aurora will notpay the bill until January. (Use Accounts Payable.)f. Aurora pays its employees on Monday for the previous week’s wages. Its employeesearn $1,500 for a five-day workweek. December 31 falls on Wednesday this year.g. On October 1, Aurora agreed to provide a four-month air system check (beginningOctober 1) for a customer for $3,000. Aurora has completed the system check everymonth, but payment has not yet been received and no entries have been made.Requirements1. Journalize the adjusting entries on December 31.2. Using the…
Chapter 14 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 14 - Under the periodic inventory system, the beginning...Ch. 14 - Under the periodic inventory system, the ending...Ch. 14 - The cash received in advance before delivering a...Ch. 14 - Unearned revenue is adjusted into an expense...Ch. 14 - Sales Returns and Allowances is classified as a...Ch. 14 - Prob. 1MCCh. 14 - Prob. 2MCCh. 14 - Prob. 3MCCh. 14 - Prob. 4MCCh. 14 - Prob. 5MC
Ch. 14 - Prepare the cost of goods sold section for Josephs...Ch. 14 - The Venice Theatre sold and collected cash of...Ch. 14 - Prob. 3CECh. 14 - Using the partial work sheet provided below,...Ch. 14 - Prob. 5CECh. 14 - A firm is preparing to make adjusting entries at...Ch. 14 - Prob. 2RQCh. 14 - Prob. 3RQCh. 14 - What is an unearned revenue?Ch. 14 - Give three examples of unearned revenue.Ch. 14 - Prob. 6RQCh. 14 - Prob. 7RQCh. 14 - A firm is preparing to make adjusting entries at...Ch. 14 - ADJUSTMENT FOR MERCHANDISE INVENTORY USING T...Ch. 14 - CALCULATION OF COST OF GOODS SOLD: PERIODIC...Ch. 14 - ADJUSTMENT FOR UNEARNED REVENUES USING T ACCOUNTS...Ch. 14 - WORK SHEET EXTENSIONS FOR MERCHANDISE INVENTORY...Ch. 14 - DETERMINING THE BEGINNING AND ENDING INVENTORY...Ch. 14 - JOURNALIZE ADJUSTING ENTRIES FOR A MERCHANDISING...Ch. 14 - JOURNAL ENTRIES UNDER THE PERPETUAL INVENTORY...Ch. 14 - Prob. 8SEACh. 14 - COMPLETION OF A WORK SHEET SHOWING A NET INCOME...Ch. 14 - COMPLETION OF A WORK SHEET SHOWING A NET LOSS The...Ch. 14 - WORKING BACKWARD FROM ADJUSTED TRIAL BALANCE TO...Ch. 14 - Prob. 12SPACh. 14 - ADJUSTMENT FOR MERCHANDISE INVENTORY USING T...Ch. 14 - CALCULATION OF COST OF GOODS SOLD: PERIODIC...Ch. 14 - ADJUSTMENT FOR UNEARNED REVENUES USING T ACCOUNTS...Ch. 14 - WORK SHEET EXTENSIONS FOR MERCHANDISE INVENTORY...Ch. 14 - Prob. 5SEBCh. 14 - Prob. 6SEBCh. 14 - JOURNAL ENTRIES UNDER THE PERPETUAL INVENTORY...Ch. 14 - JOURNALIZE ADJUSTING ENTRY FOR A MERCHANDISING...Ch. 14 - COMPLETION OF A WORK SHEET SHOWING A NET INCOME A...Ch. 14 - Prob. 10SPBCh. 14 - WORKING BACKWARD FROM ADJUSTED TRIAL BALANCE TO...Ch. 14 - WORKING BACKWARD FROM THE INCOME STATEMENT AND...Ch. 14 - A friend of yours recently opened Abracadabra, a...Ch. 14 - Jason Tierro, an inventory clerk at Lexmar...Ch. 14 - John Neff owns and operates Waikiki Surf Shop. A...Ch. 14 - Block Foods, a retail grocery store, has agreed to...
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
- The Venice Theatre sold and collected cash of 45,000 for season tickets. Upon collection of cash, Unearned Ticket Revenue was credited. At the end of the accounting period, 15,000 had been earned. Make the appropriate adjusting entry.arrow_forwardEXPENSE METHOD OF ACCOUNTING FOR PREPAID EXPENSES Davidsons Food Mart paid 1,200 in advance to the local newspaper for advertisements that will appear monthly. The following entry was made: At the end of the year, December 31, 20--, Davidson received notification that advertisements costing 800 had been run. Prepare the adjusting entry.arrow_forwardEXPENSE METHOD OF ACCOUNTING FOR PREPAID EXPENSES Ryans Fish House purchased supplies costing 3,000 for cash. This amount was debited to the supplies expense account. At the end of the year, December 31, 20--, an inventory showed that supplies costing 500 remained. Prepare the adjusting entry.arrow_forward
- Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1, 2019, to provide plant watering services for Lola Inc.s office buildings. Jennifers received 4 months' service fees in advance on signing the contract. Required: 1. Prepare Jennifers journal entry to record the cash receipt for the first 4 months. 2. Prepare Jennifers adjusting entry at December 31, 2019. 3. CONCEPTUAL CONNECTION How would the advance payment (account(s) and amounts(s)] be reported in Jennifers December 31, 2019, balance sheet? How would the advance payment [account(s) and amount(s)] be reported in Lolas December 31, 2019, balance sheet?arrow_forwardReversing Entries Thomas Company entered into two transactions involving promissory notes and properly recorded each transaction. 1. On November 1, it purchased land at a cost of 8,000. It made a 2,000 down payment and signed a note payable agreeing to pay the 6,000 balance in 6 months plus interest at an annual rate of 10%. 2. On December 1, it accepted a 4,200, 3-month, 12% (annual interest rate) note receivable from a customer for the sale of merchandise. On December 31, Thomas made the following related adjustments: Required: 1. Assuming that Thomas uses reversing entries, prepare journal entries to record: a. the January 1, reversing entries b. the March 1, 4,326 collection of the note receivable c. the May 1, 6,300 payment of the note payable 2. Assuming instead that Thomas does not use reversing entries, prepare journal entries to record the collection of the note receivable and the payment of the note payable.arrow_forwardAdjustment data at December 31 follow:a. On December 15, Canton contracted to perform services for a client receiving $2,000 in advance. Canton recorded this receipt of cash as Unearned Revenue. As of December 31, Canton has completed $1,800 of the services.b. Canton prepaid two months of rent on December 1.c. Canton used $400 of office supplies during the month.d. Depreciation for the equipment is $700.e. Canton received a bill for December’s online advertising, $400. Canton will not pay the bill until January. (Use Accounts Payable.)f. Canton pays its employees weekly on Monday for the previous week’s wages. Its employees earn $2,000 for a five-day workweek. December 31 falls on Wednesday this year.g. On October 1, Canton agreed to provide a four-month air system check (beginning October 1) for a customer for $2,040. Canton has completed the system check every month, but payment has not yet been received and no entries have been made.arrow_forward
- For each separate case, record an adjusting entry (if necessary). Lonzo Company receives $3,000 cash in advance for six months of recycling services on September 1 and records it by debiting Cash and crediting Unearned Revenue for $3,000. Lonzo provides recycling services monthly as promised. Prepare the December 31 year-end adjusting entry that Lonzo records for the work performed from September 1 through December 31. On October 20, Milwaukee Bucks sold a 10 game ticket package for $200 and recorded Unearned Revenue. By December 31, 4 of the 10 games had been played. Record the December 31 year-end adjusting entry that the Bucks record for the 40% of revenue earned on the $200 ticket package. Prepare the December 31 year-end entry that companies record to adjust the Revenue and the Unearned Revenue accounts.arrow_forwardDo not copy from bartleby On December 1, Oren Marketing Company received $4,500 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned revenue. The adjusting entry for the year ended December 31 would include: Mutiple Choice a debit to Services Revenue for $3,000.  a credit to Unearned Revenue for $1,500.  a debit to Unearned Revenue for $2,250.  a credit to Services Revenue for $3,000.  a debit to Services Revenue for $4,500.arrow_forwardUse the adjusted trial balance and prepare a properly formatted multi-step income statement  Adjusted trial balance   30- APR   Debit Credit Cash 68,000  accounts receivable 12,000  Prepaid insurance 850  Prepaid Advertising 13,250  Office Supplies 1,475  Merchandise inventory 27,850  Equipment 250,000  Accumulated Depreciation - Equipment  100,000 Music Copyrights 60,000  Accounts Payable  10,300 Salaries Payable  63,018 notes payable  7,500 long-term notes payable  92,500 common stock  25,000 retained earnings  173,862 dividends 30,000  sales  265,065 sales discount 25,702  Sales returns and allowances 4,370  cost of goods sold 124,209  insurance expense (on office) 3,000  Advertising expense 1,900  office salaries expense 23,000  Office supplies expense 13,319  Office rent 24,000  Depreciation expense - office building 5,000  royalties (an expense) 26,000  travel expenses (sales related)…arrow_forward
- PREPARE ADJUSTED TRIAL BALANCE BY USING THE INFORMATION On December 1, 2020, Sheridan Distributing Company had the following account balances.   Debit    Credit Cash  $7,500  Accumulated Depreciation—Equipment  $2,640 Accounts Receivable  4,900  Accounts Payable  4,500 Inventory  12,200  Salaries and Wages Payable  1,000 Supplies  1,300  Owner’s Capital  44,160 Equipment  26,400       $52,300    $52,300 During December, the company : Dec. 6  Paid $1,800 for salaries and wages due employees, of which $800 is for December and $1,000 is for November salaries and wages payable. 8  Received $1,900 cash from customers in payment of account (no discount allowed). 10  Sold merchandise for cash $6,500. The cost of the merchandise sold was $3,900. 13  Purchased merchandise on account from Boehm Co. $9,000, terms 2/10, n/30. 15  Purchased supplies for cash $1,600. 18  Sold merchandise on account $12,800, terms 3/10, n/30. The…arrow_forwardUsing the adjusted trial balance data below for the Rollins Company, prepare a Multi-step Income Statement          Note: Enter all amounts as positive amounts and in order of how they appear on the trial balance                     Rollins Company     Adjusted Trial Balance     December 31, 2020     Account    Debit Credit     Cash    240,000      Accounts Receivable    966,000      Merchandise Inventory    1,690,000      Supplies    13,500      Prepaid Rent    8,000      Land    85,000      Equipment    3,573,000      Accum. Deprec. - Equip.     1,820,000     Accounts Payable     342,000     Salaries Payable     45,500     Unearned Revenue     40,000     Sales Tax Payable     22,500     Note Payable     300,000     Common Stock     500,000     Retained Earnings     2,629,000…arrow_forwardJournalizing and posting an adjusting entry for unearned revenue Eastside Magazine collects cash from subscribers in advance and then mails the magazines to subscribers over a one-year period. Requirements Record the journal entry to record the original receipt of $180,000 cash. Record the adjusting entry that Eastside Magazine makes to record earning $8,000 in subscription revenue that was collected in advance. Using T-accounts, post the journal entry and adjusting entry to the accounts involved and show their balances after adjustments. (Ignore the Cash account.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY