what's the difference between prepaid expenses and unearned revenues? I already know the definition of prepaid expenses----a company has paid cash but not yet incurred the expenses, and unearned revenues---company has received cash but not yet earned the revenues.
Also, whats the exact meaning of bold words above, please give me some examples. Thank you!
Answer
what's the difference between prepaid expenses and unearned revenues? I already know the definition of prepaid...
Explain the difference between A) Accrued revenues and unearned revenues; B) Accrued expenses and prepaid expenses; C) Give an example of each.
Classify the following adjusting entries as involving prepaid expenses, unearned revenues, accrued expenses, or accrued revenues. a. To record rent expense incurred but not yet paid. | b. To record cash received from gift card sales. c. To record service revenues performed but not yet billed (nor recorded). d. To record expiration of prepaid rent. e. To record supplies used as supplies expense.
What's the difference between a prepaid and an unearned account? Why is it necessary to adjust these at the end of the period? You can use prepaid rent vs unearned rent as examples in your explanation.
At Sugarland Ltd. prepaid costs are debited to expense when cash is paid and unearned revenues are credited to revenue when the cash is received. During January of the current year, the following transactions occurred. Received $11,100 for services to be performed in the future. Paid $3,600 for casualty insurance protection for the year. Paid $5,700 for supplies Jan. 2 2 10 On January 31, it is determined that $3,500 of the service revenue has been earned and that there...
5. d. $5,120 Toole Company had the following transactions during 2020: Sales of $4,200 on account Collected $2,600 for services to be performed in 2021 Paid $1,630 cash in salaries Purchased airline tickets for $450 in December for a trip to take place in 2021 What is Toole's 2020 net income using cash basis accounting? a $520. b. $970 c. $4,720. d. $5,170 Adjusting entries are required a because some costs expire with the passage of time and have not...
Exercise 3-12A Adjusting for prepaids recorded as expenses and unearned revenues recorded as revenues LO P6 10 Ricardo Construction began operations on December 1. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance. Prepare journal entries for items a through dand the adjusting entries as of its December 31 period-end for iten e through g Hint a. Supplies are...
At Pronghorn Corp., prepaid costs are debited to expense when cash is paid and unearned revenues are credited to revenue when the cash is received. During January of the current year, the following transactions occurred. Jan. 2 Received $10,100 for services to be performed in the future. Paid $3,672 for casualty insurance protection for the year. Paid $4,650 for supplies. 10 On January 31, it is determined that $3,460 of the service revenue has been earned and that there is...
Match each definition with its related term by selecting the appropriate botter in the drop down provided. There should be only one definition per term. (that is, there are more definitions than terma.) Definitions: A. Report the long life of a company in shorter periods. B. Record expenses when incurred in caming revenue The time it taken to purchase goods or services from suppliers, vol goods or services to customers, and collect cash from customer. D. revenues E. Increases in...
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...
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...