Suppose on December 31, Hipzone Inc. bills one of their customers $450 for a project that they had completed which had accumulated $220 of costs. The invoice has the normal terms requesting payment in 30 days. Make ALL of the entries required by this transaction. HINT: Think of Accumulated Project Costs as an account similar to Inventory - it is an asset account used to accumulate the costs that have been incurred related to the project being completed for the customer.

  
 

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Trial Balance Trial Balance as of 1/1/13 Journal Entries Trial Balance as of 12/31/13 ACCOUNTS DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT CASH ACCOUNTS RECEIVABLE $1,017,000 $2,267,000 $0 $0 $1,017,000 $0 g 50 $0 $2,267,000 ACCUMULATED PROJECT COSTS $96,000 $0 $0 $96,000 PREPAID EXPENSES $43,984 $0 FURNITURE AND EQUIPMENT $1,763,000 ACCUMULATED DEPRECIATION SOFTWARE $126,000 g $0 $680,000 $0 $0 90 $0 $43,984 60 50 $0 60 $1,763,000 60 $0 $126,000 $680,000 Trial Balance Trial Balance as of 1/1/13 Journal Entries Trial Balance as of 12/31/13 ACCOUNTS DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT CASH ACCOUNTS RECEIVABLE $1,017,000 $2,267,000 $0 $0 $1,017,000 $0 g 50 $0 $2,267,000 ACCUMULATED PROJECT COSTS $96,000 $0 $0 $96,000 PREPAID EXPENSES $43,984 $0 FURNITURE AND EQUIPMENT $1,763,000 ACCUMULATED DEPRECIATION SOFTWARE $126,000 g $0 $680,000 $0 $0 90 $0 $43,984 60 50 $0 60 $1,763,000 60 $0 $126,000 $680,000

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