Homework Answers
ANSWER-OPTION D
EXPLANATION
FIRST ENTRY ON DEC 1 WILL BE CASH A/C DEBIT BY 10200 TO REVENUE A/C CREDIT BY 10200
SECOND ENTRY WILL BE DONE ON DEC 31 AS A ADJUSTING ENTRY THAT WILL BE REVENUE A/C DEBIT BY 6800{(10200/3)*2} TO UNEARNED INCOME A/C CREDIT BY 6800.
THESE TWO ENTRY WILL INCREASE A CASH BY 3400 AND REVENUE BY 3400. AND WE KNOW THAT CASH IS ASSET AND REVENUE BE THE PART OF EQUITY THEREFORE THERE WILL BE INCREASE IN ASSET AND STOCKHOLDERS' EQUITY BY 3400.
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advance from his client, james Company, for services to be
performed over the next six months.
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adjustment for Josh Smith is an accounting equation.
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adjustment for james company in an accounting equation.
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advance from his client, james Company, for services to be
performed over the next six months.
Required:
a. Recored the deferral and the related December 31, Year 1,
adjustment for Josh Smith is an accounting equation.
b. Record the deferral and the related December 31, year 1,
adjustment for james company in an accounting equation.
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