One of the criteria for recognizing revenue is that it must be earned. In other words,...
- One of the criteria for recognizing revenue is that it must be earned. In other words, a company must fulfill all obligations to the customers. If the company received cash from the two contracts, but had not yet earned any revenue under the agreements, what accounts would change? If the company had not received any cash from customers and revenue was unearned, what account would change?
Homework Answers
If company received cash but not earned revenue, then unearned revenue entry will be a debit to cash account and credit to unearned revenue account. As company will earn revenue, it will reduce balance in unearned revenue account by debit and increase balance in revenue account by credit.
If company didn't receive any cash from customers and revenue was unearned, no account will change.
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One of the criteria for recognizing revenue is that it must be
earned. In other words,...
One of the criteria for recognizing revenue is that it must be earned. In other words,...
One of the criteria for recognizing revenue is that it must be earned. In other words, a company must fulfill all obligations to the customers. If MicroStrategy received cash from the two contracts, but had not yet earned any revenue under the agreements, what accounts would change? If MicroStrategy had not received any cash from customers and revenue was unearned, what account would change?
At the beginning of the year, Modish Advertising owed customers $2,200 for unearned revenue collected in...
At the beginning of the year, Modish Advertising owed customers $2,200 for unearned revenue collected in advance. During the year, Modish received advance cash receipts of $8,600 and earned $50,000 of service revenue (exclusive of any amount earned from advance payments). At year-end, the liability for unearned revenue is $4,700 and unadjusted service revenue is $50,000. Read the requirements. 1. Record the adjusting entry assuming that Modish records the cash receipt of unearned revenue by initially crediting a liability account....
Drop menu options are Adj Bal, Bal, Cash collected for future services, and Earned from advanced...
Drop menu options are Adj Bal, Bal, Cash collected for future
services, and Earned from advanced collections
At the beginning of the year, Choice Advertising owed customers $3,200 for unearned revenue collected in advance. During the year, Choice received advance cash receipts of $8,600 and earned $40,000 of service revenue (exclusive of any amount earned from advance payments). At year-end, the liability for unearned revenue is $4,700 and unadjusted service revenue is $40,000. Read the requirements. Requirement 1. Record the...
14. The journal entry to accrue interest revenue is..- c. Interest Receivable Interest Revenue a. Cash Interest Rev...
14. The journal entry to accrue interest revenue is..- c. Interest Receivable Interest Revenue a. Cash Interest Revenue То ассrue interest To accrue interest d. Interest Revenue b. Interest Revenue Interest Receivable Cash To accrue interest To accrue interest 15. Your company sells a product for another company and receives a com mission of 10% on sales, By the end of your company's fiscal year, your company had sales of $200,000 and received $8,000, which was credited to Revenue. How...
Adjusting entries affect at least one balance sheet account and at least one income statement account....
Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. a. Entry to record revenue earned that was previously received as cash...
Chinchillas R Chill magazine company’s Unearned Revenue account had a balance of $25,400 on January 1,...
Chinchillas R Chill magazine company’s Unearned Revenue account had a balance of $25,400 on January 1, 2016. On December 31, 2016, as part of the adjusting entry, they recognized Subscription revenue of $29,600. The December 31, 2016 balance of the Unearned Revenue account was $24,600. What must have been the amount of cash received by the Chinchillas R Chill magazine company from customers during the year 2016? Select one: A. $28,800 B. $29,600 C. $30,400 D. $20,400
S3-13. (Learning Objective 3: Adjust the accounts for accrued and unearned revenue) Dexter, Inc., collects cash...
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...
LO 3 S3-13. (Learning Objective 3: Adjust the accounts for accrued and unearned revenue) Dexter, Inc.,...
LO 3 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...
Holloway Company earned $7,600 of service revenue on account during Year 1. The company collected $6,460...
Holloway Company earned $7,600 of service revenue on account
during Year 1. The company collected $6,460 cash from accounts
receivable during Year 1.
Required
Based on this information alone, determine the following for
Holloway Company. (Hint: Record the events in general ledger
accounts under an accounting equation before satisfying the
requirements.) (Enter any decreases to account balances
with a minus sign.)
a. The balance of the accounts receivable that
would be reported on the December 31, Year 1, balance sheet....
Which of the following is a revenue account?
Which of the following is a revenue account?retained earningsfees earnedrent expenseunearned revenueWhich of the following accounts is increased with a debit?common stockprepaid insurancefees earnedunearned revenueWhich of the following errors will cause the trial balance totals to be unequal?entering an incorrect amount on the trial balancefailure to record a transaction or to post a transactionrecording the same transaction more than oncerecording the same erroneous amount for both the debit and the credit parts of a transactionWhich of the following types of...
At the beginning of the year, Modish Advertising owed customers $2,200 for unearned revenue collected in advance. During the year, Modish received advance cash receipts of $8,600 and earned $50,000 of service revenue (exclusive of any amount earned from advance payments). At year-end, the liability for unearned revenue is $4,700 and unadjusted service revenue is $50,000. Read the requirements. 1. Record the adjusting entry assuming that Modish records the cash receipt of unearned revenue by initially crediting a liability account....
Drop menu options are Adj Bal, Bal, Cash collected for future
services, and Earned from advanced collections
At the beginning of the year, Choice Advertising owed customers $3,200 for unearned revenue collected in advance. During the year, Choice received advance cash receipts of $8,600 and earned $40,000 of service revenue (exclusive of any amount earned from advance payments). At year-end, the liability for unearned revenue is $4,700 and unadjusted service revenue is $40,000. Read the requirements. Requirement 1. Record the...
14. The journal entry to accrue interest revenue is..- c. Interest Receivable Interest Revenue a. Cash Interest Revenue То ассrue interest To accrue interest d. Interest Revenue b. Interest Revenue Interest Receivable Cash To accrue interest To accrue interest 15. Your company sells a product for another company and receives a com mission of 10% on sales, By the end of your company's fiscal year, your company had sales of $200,000 and received $8,000, which was credited to Revenue. How...
Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. a. Entry to record revenue earned that was previously received as cash...
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...
LO 3 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...
Holloway Company earned $7,600 of service revenue on account
during Year 1. The company collected $6,460 cash from accounts
receivable during Year 1.
Required
Based on this information alone, determine the following for
Holloway Company. (Hint: Record the events in general ledger
accounts under an accounting equation before satisfying the
requirements.) (Enter any decreases to account balances
with a minus sign.)
a. The balance of the accounts receivable that
would be reported on the December 31, Year 1, balance sheet....
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