Prepare any necessary adjusting entries at December 31, 2011, for

Prepare any necessary adjusting entries at December 31, 2011, for Yacht Company’s year-end financial statements for each of the following separate transactions and events.
1. Yacht Company records an adjusting entry for $2,000,000 of previously unrecorded cash sales (costing $1,000,000) and its sales taxes at a rate of 5%.
2. The company earned $40,000 of $100,000 previously received in advance for services.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

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