Following are two income statements for Alexis Co. for the year ended December 31. The left column is prepared before any adjusting entries are recorded, and the right column includes the effects of adjusting entries. The company records cash receipts and payments related to unearned and prepaid items in balance sheet accounts. Analyze the statements and prepare the eight adjusting entries that likely were recorded. (30% of the $7,000 adjustment for Fees Earned has been earned but not billed, and the other 70% has been earned by performing services that were paid for inadvance.)
Answer to relevant QuestionsOn March 1, 2011, a company paid a $18,000 premium on a 36-month insurance policy for coverage beginning on that date. Refer to that policy and fill in the blanks in the followingtable.For each of the following entries, enter the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.)A. To record receipt of unearned revenue.B. To record ...Following is the unadjusted trial balance for Augustus Institute as of December 31, 2013, which initially records prepaid expenses and unearned revenues in balance sheet accounts. The Institute provides one-on-one training ...Review the opening feature of this chapter dealing with ash&dans and the entrepreneurial owners, Ashley Cook and Danielle Dankner.Required1. Assume that ash&dans sells a $300 gift certificate to a customer, collecting the ...On September 15, Krug Company purchased merchandise inventory from Makarov with an invoice price of $ 35,000 and credit terms of 2/10, n/30. Schneider Company paid Makarov on September 28. Prepare any required journal ...
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