On September 1, Patterson Maintenance Company contracted to provide monthly maintenance services for the next five...
On September 1, Patterson Maintenance Company contracted to provide monthly maintenance services for the next five months at a rate of $ 2,900 per month. The client paid Patterson $ 14,500 on September 1. Assuming Patterson records deferred revenues using the alternative treatment, what would be the entry on September 1?
A.
Debit Cash and credit Service Revenue for $14,500
B.
No entry is needed until the services are performed
C.
Debit Cash and credit Unearned Revenue for $14,500
D.
Debit Prepaid Maintenance and credit Cash for $ 14,500
Homework Answers
Correct answer-----------Debit Cash and credit Service Revenue for $14,500.
.
Generally when cash is received in advance then cash is debited and unearned revenue or deferred revenue is credited but when alternate method is used then service revenue is credited instead of deferred revenue.
The adjusting entry is made at the ens of the period in alternate method by crediting deferred revenue and debiting service revenue with the unearned amount which leaves the service revenue account equal to only the part earned.
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On September 1, Patterson Maintenance Company contracted to
provide monthly maintenance services for the next five...
Mathews Company receives $1,500 on December 1 of the current year for services to be performed...
Mathews Company receives $1,500 on December 1 of the current year for services to be performed equally over the next 3 months. Assuming Mathews records deferred revenues using the alternative treatment, what would be the entry on December 1? O A. Debit Cash and credit Unearned Revenue for $1,500. B. Debit Cash and credit Unearned Revenue for $1,000. C. Debit Cash and credit Service Revenue for $500. OD. Debit Cash and credit Service Revenue for $1,500,
On November 30, 2019, Tate Company collected cash of $4,500 for services to be performed for...
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A company provides maintenance services to customers. The company's policy is to provide services and then...
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a. Unearned Rent Revenue. The Krug Company collected $17,400 rent in advance on November 1, debiting...
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Garcia Company had the following selected transactions during the year. Jan. 1 The company paid $8,000...
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Needs help with this questions please!! Below is the trial balance of Slowcombe Services on September...
Needs help with this questions please!!
Below is the trial balance of Slowcombe Services on September 30, 2014 SLOWCOMBE SERVICES Trial Balance September 30, 2014 Debit Credit Cash Accounts receivable Supplies Equipment Accounts payable Unearned revenue W. Slowcombe, capital $7,620 2,650 2,230 7,780 $5,350 850 14,080 $20.280 $20,280 The October transactions were as follows: Oct. 5 Received $1,050 in cash from customers for accounts receivable due 10 Billed customers for services performed in the amount of $5,370 15 Paid employee...
Mathews Company receives $1,500 on December 1 of the current year for services to be performed equally over the next 3 months. Assuming Mathews records deferred revenues using the alternative treatment, what would be the entry on December 1? O A. Debit Cash and credit Unearned Revenue for $1,500. B. Debit Cash and credit Unearned Revenue for $1,000. C. Debit Cash and credit Service Revenue for $500. OD. Debit Cash and credit Service Revenue for $1,500,
On November 30, 2019, Tate Company collected cash of $4,500 for services to be performed for the customer evenly over the next three months beginning December 1, 2019. The most appropriate journal entry to record this transaction on November 30th is debit Cash and credit Prepaid Service Revenue for $4,500 debit Cash and credit Unearned Revenue for $4,500. debit Unearned Revenue and credit Cash for $4,500. debit Cash and credit Service Revenue for $4.500.
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a. Unearned Rent Revenue. The Krug Company collected $17,400 rent in advance on November 1, debiting Cash and crediting Unearned Rent Revenue. The tenant was paying 12 months' rent in advance and occupancy began November 1. b. Unearned Services Revenue. The company charges $170 per insect treatment. A customer paid $680 on October 1 in advanc four treatments, which was recorded with a debit to Cash and a credit to Unearned Services Revenue. At year-end, the compa has applied three...
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If a business has received cash in advance of services performed and credits a liability account, the adjusting entry needed after the services are performed will be: O debit Unearned Service Revenue and credit Service Revenue. O debit Unearned Service Revenue and credit Accounts Receivable. O debit Unearned Service Revenue and credit Prepaid Expense. O debit Unearned Service Revenue and credit Cash.
Garcia Company had the following selected transactions during the year. Jan. 1 The company paid $8,000 cash for 12 months of insurance coverage beginning immediately. Aug 1 The company received $5,400 cash in advance for 6 months of contracted services beginning on August 1 and ending on January 31. Dec. 31 The company prepared any necessary year-end adjusting entries related to insurance coverage and services performed. Dec. 31 The company prepared any necessary year-end adjusting entries related to insurance coverage...
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Needs help with this questions please!!
Below is the trial balance of Slowcombe Services on September 30, 2014 SLOWCOMBE SERVICES Trial Balance September 30, 2014 Debit Credit Cash Accounts receivable Supplies Equipment Accounts payable Unearned revenue W. Slowcombe, capital $7,620 2,650 2,230 7,780 $5,350 850 14,080 $20.280 $20,280 The October transactions were as follows: Oct. 5 Received $1,050 in cash from customers for accounts receivable due 10 Billed customers for services performed in the amount of $5,370 15 Paid employee...
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