Question

Century Transport Inc. of Atlanta provides in-town parcel delivery services in addition to a full range of passenger services. Century engaged in the activities below during the current year: Required: 1. Prepare adjusting entries at December 31 for these four activities. If no entry is required, select "No entry required" for all accounts and leave associated amount boxes blank a. Century received $3,500 cash in advance from Rob's Department Store for an estimated 175 deliveries during December 2019 and January and February of 2020. The entire amount was recorded as unearned revenue when received. During December 2019, 50 deliveries were made for Rob's. Dec. 31 Unearned Service Revenue Service Revenue (Record earned revenue)

Answer 1

Debit Credit $ 1000 Uneorned Service Revenue Service Revenue 3500 50 $1000 x 50) bi $107oou Uneomed Service Revenue senice Revenue (soo X 1070o) 50 $ 107000 $7800 Accounts Receivable Service Revenue 11700 x 2 3 $7800 o d. No entry Required No entry Required 2- Understated by $115800 (1000 + 107000+7800)