Pavillion Company experienced the following events and transactions during July: July 1 Received $4,000 in advance of

Question:

Pavillion Company experienced the following events and transactions during July:
July 1 Received $4,000 in advance of performing work for Andrew Renking.
6 Received $16,800 in advance of performing work for Matt Swarbuck.
12 Completed the job for Andrew Renking.
18 Received $15,000 in advance of performing work for Drew Sayer.
27 Completed the job for Matt Swarbuck.
31 The job for Drew Sayer has not been started.
a. Give journal entries (including any adjusting entry as of the end of the month) to record these items using the procedure of initially crediting the Unearned Fees account when a payment is received from a customer in advance of performing services.
b. Give journal entries (including any adjusting entry as of the end of the month) to record these items using the procedure of initially crediting the Fees Earned account when a payment is received from a customer in advance of performing services.
c. Under each method, determine the amount of earned fees that should be reported on the income statement for July and the amount of unearned fees that should appear on the as of July 31.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...