Question: An entity has recognised revenue for which the services have not been performed but the cash has been received. Which of the following is the

An entity has recognised revenue for which the services have not been performed but the cash has been received. Which of the following is the correct adjusting entry?

a. Dr Revenue

Cr Cash

b. Dr Revenue received in advance

Cr Cash

c. Dr Liability

Cr Revenue

d. Dr Revenue

Cr Revenue received in advance

e. Dr Cash

Cr Revenue

Pixel Copies recorded a cash collection on account by debiting Cash and crediting Accounts Payable. What will the trial balance show for this error?

a. Too much for cash

b. Too much for liabilities

c. Too much for expenses

d. The trial balance will not balance

e. None of the above

Step by Step Solution

★★★★★

3.30 Rating (150 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Question 1 Solution is Option c Dr Liability Cr Revenue When cash is received i... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Suppose you are trying to classify a variable where 96% of its observations equal 0 and only 4% equal 1. You run a logistic regression, and the classification table shows that 97% of the...

Which one of the following is the correct formula for EVA? a. Net operating profit before tax (Cost of capital Invested capital) b. Net operating profit after tax (Cost of capital Invested...

Work each problem. Which of the following is the correct factorization of 6x 2 + x - 12? A. (3x + 4)(2x + 3) B. (3x - 4)(2x - 3) C. (3x + 4)(2x - 3) D. (3x - 4)(2x + 3)

Work each problem. Which of the following is the correct factorization of x 3 + 8? A. (x + 2) 3 B. (x + 2)(x 2 + 2x + 4) C. (x + 2)(x 2 - 2x + 4) D. (x + 2)(x 2 - 4x + 4)

Ouellette & Associates began operations on January 1, 2017. Its fiscal year end is December 31 and it prepares financial statements and adjusts its accounts annually. Selected transactions for 2017...

Pixel Copies recorded a cash collection on account by debiting Cash and crediting Accounts Payable. What will the trial balance show for this error? a. Cash is overstated. b. Liabilities are...

As a management accountant in a small real estate services firm, you have become aware of a strategic initiative in your firm to promote its services to a new class of customers. Currently, most of...

Allan Co. had the following balances on December 31, 2012: The accountant for Allan has asked you to make an adjustment since $400 worth of janitorial services have just been performed for customers...

Rearranging Dirt Diggers provides earth moving services with large tractors. In August the following transactions were undertaken by Rearranging Dirt Diggers. Ignore GST. Required (a) Record all...

Accounting for Zero-Interest-Bearing Note Soon after beginning the year-end audit work on March 10 at Engone Company, the auditor has the following conversation with the controller. CONTROLLER: The...

Indicate which of the following benefits provided to the employees must be included in taxable income? a. SKY Airlines allows employees to fly for free if seats have not been sold within 15 minutes...

During 2018, Leslies Boutique wrote off $13,000 in accounts receivable as uncollectible. At the end of this year, the accounts receivable balance was $256,400. Based on past experience, it is...

1) In your own words, explain how the threat of terrorism in the United States is inexorably linked to events in the Middle East, with an emphasis on the Israeli/Palestinian conflict. Name at least...

My friend Julia has started dating a person who I suspect might be a vampire. Their name is DRANKULA and he loves soda. Julia wants to buy him some drinks for their next date and needs our help to...

An insulated glass tube and condenser are mounted on a reboiler containing benzene and toluene. The condenser returns liquid reflux so that it runs down the wall of the tube. At one point in the tube...

A Coast Guard cutter detects an unidentified ship at a distance of 20.0 km in the direction 15.0 east of north. The ship is traveling at 26.0 km/h on a course at 40.0 east of north. The Coast Guard...

When high-energy charged particles move through a transparent medium with a speed greater than the speed of light in that medium, a shock wave, or bow wave, of light is produced. This phenomenon is...

Consider design B of Problem 3.137. Over time, dust can collect in the fine grooves that separate the fins. Consider the buildup of a dust layer of thickness Ld, as shown in the sketch. Calculate and...

As the people sing in church, the sound level everywhere inside is 101 dB. No sound is transmitted through the massive walls, but all the windows and doors are open on a summer morning. Their total...

In which source would you most likely find an invitation to public workshops on proposed regulations for autonomous vehicles. Group of answer choices California Code of Regulations California...

Carolinas Golf School, Inc., completed the following transactions during October, 2012: Oct 1 Prepaid insurance for October through December, $900. 4 Performed services (gave golf lessons) on...

Effect of deferrals on financial statements: three separate single-cycle examples Required a. On February 1, 2012, Heider, Inc., was formed when it received $80,000 cash from the issue of common...

Brown Company provides the following office support services for more than 100 small clients: 1. Supplying temporary personnel 2. Providing monthly bookkeeping services 3. Designing and printing...

On September 1, 2010, the account balances of Rand Equipment Repair were as follows. During September the following summary transactions were completed. Sept. 8 Paid $1,400 for salaries due...

On November 1, 2012, the account balances of Robinson Equipment Repair were as follows. During November, the following summary transactions were completed.Nov. 8 Paid $1,700 for salaries due...

Oaks Company had the following balances in its accounting records as of December 31, 2010. The following accounting events apply to Oaks's 2010 fiscal year: Jan. 1 Acquired an additional $70,000 cash...