Instructions

For each of the bulleted items below:

1. Determine:
   1. when revenue was/will be earned, or expense was/will be incurred.
   2. when cash was/will be paid or received.
2. Identify which accounts will be impacted and the related increase or decrease to each.
3. Post your entry to the TAT, roll each income statement account through net income and retained earnings, and ensure that the accounting equation remains in balance.
4. Flag whether the entry is a regular transaction or an adjusting journal entry (AJE).

Advertising Costs:

1. On 9/29, paid $750 invoice for a print ad that will run on 10/3.
2. On 9/20, paid $2,500 invoice for a print ad that ran on 9/15.
3. On 9/27, received $1,875 invoice for a print ad that ran on 9/25. The invoice will be paid in October.
4. On 9/30, estimated $1,000 cost of a print ad that ran on 9/27 - no invoice yet received.

Consulting Services for Clients:

1. On 9/12, billed ABC Company $6,500 for consulting services provided on 9/5.
2. On 9/17, received $8,000 from GHI Company for consulting services to be provided in the future.
3. On 9/25, received $1,325 from XYZ company for consulting services provided on that same day.
4. On 9/27, received $2,500 from ABC Company in partial payment of the 9/12 invoice.
5. On 9/30, noted that $3,400 of consulting services GHI Company paid for on 9/17 had been completed during September.

Answer rating: 100% (QA)

Answer Advertising Costs 1 Paid 750 invoice for a print ad that will run on 103 When revenueexpense occurred Expense incurred on 929 When cash was pai... View the full answer