Instructions For each of the bulleted items below: Determine: when revenue was/will be earned, or expense was/will
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Question:
Instructions
For each of the bulleted items below:
- Determine:
- when revenue was/will be earned, or expense was/will be incurred.
- when cash was/will be paid or received.
- Identify which accounts will be impacted and the related increase or decrease to each.
- Post your entry to the TAT, roll each income statement account through net income and retained earnings, and ensure that the accounting equation remains in balance.
- Flag whether the entry is a regular transaction or an adjusting journal entry (AJE).
Advertising Costs:
- On 9/29, paid $750 invoice for a print ad that will run on 10/3.
- On 9/20, paid $2,500 invoice for a print ad that ran on 9/15.
- On 9/27, received $1,875 invoice for a print ad that ran on 9/25. The invoice will be paid in October.
- On 9/30, estimated $1,000 cost of a print ad that ran on 9/27 - no invoice yet received.
Consulting Services for Clients:
- On 9/12, billed ABC Company $6,500 for consulting services provided on 9/5.
- On 9/17, received $8,000 from GHI Company for consulting services to be provided in the future.
- On 9/25, received $1,325 from XYZ company for consulting services provided on that same day.
- On 9/27, received $2,500 from ABC Company in partial payment of the 9/12 invoice.
- On 9/30, noted that $3,400 of consulting services GHI Company paid for on 9/17 had been completed during September.
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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