Century Transport Inc. of Atlanta provides in-town parcel delivery services in addition to a full range of passenger services. Century engaged in the following activities during the current year:

Required:

1. Prepare adjusting entries at December 31 for these four activities. If no entry is required, type "No entry required" and leave the amount boxes blank.

Century received $5,000 cash in advance from Rich's Department Store for an estimated 250 deliveries during December 2013 and January and February of 2014. The entire amount was recorded as unearned revenue when received. During December 2013, 110 deliveries were made for Rich's.

Dec. 31

Correct 2 of Item 1

Correct 3 of Item 1

Correct 4 of Item 1

Correct 5 of Item 1

(Record earned revenue)

b. Century operates several small buses that take commuters from suburban communities to the central downtown area of Atlanta. The commuters purchase, in advance, tickets for 50 one-way rides. Each 50-ride ticket costs $500. At the time of purchase, Century credits the cash received to unearned revenue. At year end, Century estimates that revenue from 9,450 one-way rides has been earned.

Dec. 31

Correct 2 of Item 2

Correct 3 of Item 2

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(Record earned revenue)

c. Century operates several buses that provide transportation for the clients of a social service agency in Atlanta. Century bills the agency quarterly at the end of January, April, July, and October for the service performed that quarter. The contract price is $7,500 per quarter. Century follows the practice of recognizing revenue from this contract in the period in which the service is performed.

Dec. 31	Correct 2 of Item 3	Correct 3 of Item 3
	Correct 4 of Item 3		Correct 5 of Item 3
	(Record earned revenue)