Question

Insert Page Layout Formulas Data Review View Help Search File Home nrXcut Calibri BLUE Copy - 11 . AA === A. Paste . Merge & Center Format Painter Clipboard Font A3438 - for 2/28 It is now February 28, the last day of the month. Note the following facts: a. You used $1,210 of supplies in February b. You performed the remainder of the work for Oakwood Company as of February 28 (transaction on 1/4) c. You performed $1,590 more of the work for Sugar Hill Company as of February 28 (transaction on 1/16). d. You did not perform any of the work yet for Lula Company as of February 28 (transaction on 2/28) e. The equipment will depreciate at a rate of $1.200 per year. 2/28 You journalize one of the six necessary adjusting entries for February Correct Date 2/28 Account supplies expense Supplies Debit 1.210 Credit 1.210 Type here to search

need the journal for D.

Answer 1

In the given case, company received cash in advance from Lula company that is recorded as unearned revenue in the books of accounts, when the company performed service for the Lula company an adjusting entry is passed to record the revenue earned but in the given case, on 28/02 work has not been performed yet, therefore, no adjusting entry is required for D.