Global Printing publishes several types of magazines. Customers are required to pay for magazines in advance. On November 5, Global receives cash of $120,000 for prepaid subscriptions. By the end of November, Global has distributed $20,000 of magazines to customers. Record the month-end adjusting entry.
Answer to relevant QuestionsFill in the blank associated with each adjusting entry:a. Prepaid expense: Debit Supplies Expense; credit _________ . b. Unearned revenue: Debit _________; credit Service Revenue. c. Accrued expense: Debit _________; credit ...Matt has been told by his instructor that dividends reduce retained earnings (and therefore stockholders’ equity). However, since he knows that stockholders are receiving the dividend, Matt doesn’t understand how paying ...Beaver Construction purchases new equipment for $50,400 cash on April 1, 2015. At the time of purchase, the equipment is expected to be used in operations for seven years (84 months) and have no resale or scrap value at the ...The following account balances appear in the 2015 adjusted trial balance of Spiders Corporation: Common Stock, $30,000; Retained Earnings, $8,000; Dividends, $1,000; Service Revenue, $28,000; Salaries Expense, $16,000; and ...Consider the following situations for Shocker:a. On November 28, 2015, Shocker receives a $4,500 payment from a customer for services to be rendered evenly over the next three months. Unearned Revenue is credited. b. On ...
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