a.
Concept Introduction:
Accounting cycle: The repetitive process in accounting performed in preparing financial statements for every reporting period is stated as an accounting cycle. The steps involved are reporting the historical events and financial transactions that have incurred, correctly.
To prepare: The
b.
Concept Introduction:
Accounting cycle: The repetitive process in accounting performed in preparing financial statements for every reporting period is stated as an accounting cycle. The steps involved are reporting the historical events and financial transactions that have incurred, correctly.
To prepare: The Reversing entry as on Jan. 1
c.
Concept Introduction:
Accounting cycle: The repetitive process in accounting performed in preparing financial statements for every reporting period is stated as an accounting cycle. The steps involved are reporting the historical events and financial transactions that have incurred, correctly.
To prepare: The Cash Receipts entry as on Jan. 16
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- Prepare Journal Entries in a Revenue Journal Shannon Consulting Company had the following transactions during the month of October: Oct. 2. Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $210. 3. Issued Invoice No. 322 to Armor Inc. for services rendered on account, $300. 14. Issued Invoice No. 323 to Pryor Corp. for services rendered on account, $110. 24. Issued Invoice No. 324 to Rose Co. for services rendered on account, $440. 29. Collected Invoice No. 321 from Pryor Corp. a. Record the October revenue transactions for Shannon Consulting Company in the following revenue journal format: REVENUE JOURNAL Accounts Rec. Dr. DATE Invoice No. Account Debited Post. Ref. Fees Earned Cr. Oct. 2 3 14 24 31 b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October? Accounts receivable Fees earned c. What is the October 31 balance of the Pryor Corp. customer account assuming a zero balance on October 1? $arrow_forwardOn December 31, Yates Co. prepared an adjusting entry for $12,000 of earned but unrecorded Consulting Revenue. On January 16, Yates received $26,700 cash as payment in full for consulting work it provided that began on December 18 and ended on January 16. The company uses reversing entries. a. Prepare the December 31 adjusting entry. c. Prepare the January 16 cash receipt entry. b. Prepare the January 1 reversing entry.arrow_forwardDo 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. 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_forward
- Prepare Journal Entries in a Revenue Journal Shannon Consulting Company had the following transactions during the month of October: Oct. 2. Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $380. 3. Issued Invoice No. 322 to Armor Inc. for services rendered on account, $540. 14. Issued Invoice No. 323 to Pryor Corp. for services rendered on account, $190. 24. Issued Invoice No. 324 to Rose Co. for services rendered on account, $790. 29. Collected Invoice No. 321 from Pryor Corp. Question Content Area a. Record the October revenue transactions for Shannon Consulting Company in the following revenue journal format: REVENUE JOURNAL DATE Invoice No. Account Debited Post. Ref. Accounts Rec. Dr.Fees Earned Cr. Oct. 2 fill in the blank 17ef77fadf92f97_1 fill in the blank 17ef77fadf92f97_3 3 fill in the blank 17ef77fadf92f97_4 fill in the blank 17ef77fadf92f97_6 14 fill in the blank…arrow_forwardRequirement 1. Journalize the adjusting entries on December 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. On December 15, Ashton contracted to perform services for a client receiving $2,600 in advance. Ashton recorded this receipt of cash as Unearned Revenue. As of December 31, Ashton has completed $1,200 of the services. Accounts and Explanation Debit Credit es Date (a) Dec. 31 Get mor Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Advertising Expense Ashton, Capital Ashton, Withdrawals Cash Depreciation Expense-Equipment Equipment Office Supplies Prepaid Rent Rent Expense Salaries Expense Salaries Payable Service Revenue Supplies Expense Unearned Revenue More info Adjustment data at December 31 follow: a. On December 15, Ashton contracted to perform services for a client receiving $2,600 in advance. Ashton recorded this receipt of cash as Unearned Revenue. As of December 31, Ashton has…arrow_forwardRosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation: Events Affecting Year 1 Provided $32, 680 of cleaning services on account. Collected $26, 144 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Events Affecting Year 2 Wrote off a $245 account receivable that was determined to be uncollectible. Provided $38, 138 of cleaning services on account. Collected $33, 752 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Required: Organize the transaction data in accounts under an accounting equation for each year. Determine the following amounts: (1) Net income for Year 1. (2) Net cash flow from operating activities for Year 1. (3) Balance of accounts receivable at…arrow_forward
- Record journal entries for the following transactions. a. On December 1, $14,000 was received for a service contract to be performed from December 1 through April 30. If an amount box does not require an entry, leave it blank. Dec. 1 Accounts Receivable 14,000 Fees Earned 14,000 b. Assuming the work is performed evenly throughout the contract period, prepare the adjusting journal entry on December 31. If an amount box does not reguire an entry, leave it blank. Dec. 31 dropdown Nextarrow_forwardRosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation. Events Affecting Year 1 Provided $33,520 of cleaning services on account. Collected $26,816 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Events Affecting Year 2 Wrote off a $251 account receivable that was determined to be uncollectible. Provided $39,118 of cleaning services on account. Collected $34,619 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Required Record the events for Year 1 and Year 2 (including closing entries for Year 1) in T-accounts. Determine the following amounts: (1) Net income for Year 1. (2) Net cash flow from operating activities for Year 1. (3) Balance of accounts…arrow_forwardEntries Related to Uncollectible Accounts The following transactions were completed by The Wild Trout Gallery during the current fiscal year ended December 31: Jan. 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $1,890 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $10,830 balance owed by Premier GS Co., which is bankrupt. July 16. Received 40% of the $19,400 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. Nov. 23. Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,080 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$8,145; Fogle Co., $2,420; Lake Furniture, $6,220; Melinda Shryer, $1,760. Dec. 31. Based on an analysis of the $959,100 of accounts receivable, it was estimated that $41,700…arrow_forward
- Creative Catering receives a $50,000 cash deposit from a customer on October 15, but will not provide the catering services until November 20. Which statement is true? A. Company credits deferred revenue for $50,000 on October 15 B. Company records nothing on October 15 C. Company credits service revenue for $50,000 on Oct 15 D. Company debits cash for $50,000 on Nov 20arrow_forwardPrepare journal entries for the following transactions by Mitchell Consulting: a) Performed $900 of consulting services to Bernstein Industries on credit with terms 2/15, n/30. b) Received payment from Bernstein Industries within the discount period.arrow_forwardFollowing are accounts and year-end adjusted balances of Cruz Company as of December 31. Number Account Title 101 Cash 126 128 167 168 301 302 403 612 622 637 640 652 Supplies Prepaid insurance Equipment Accumulated depreciation-Equipment A. Cruz, Capital A. Cruz, Withdrawals Services revenue Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Supplies expense Totals Debit $ 18,000 10,400 2,000 23,000 6,000 Credit $ 6,500 43,845 40,200 2,000 23,437 1,688 2,693 1,327 $ 90,545 $ 90,545 1. Prepare the December 31 closing entries. The account number for Income Summary is 901. 2. Prepare the December 31 post-closing trial balance. Note: The A. Cruz, Capital account balance was $43,845 on December 31 of the prior year.arrow_forward
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage