Suppose a customer rents a vehicle for three months from Commodores Rental on November 1, paying $6,000
Question:
(1) Record the rental for Commodores on November 1.
(2) Record the adjusting entry on December 31.
(3) Calculate the year-end adjusted balances of the Unearned Revenue and Service Revenue accounts (assuming the balance of Unearned Revenue at the beginning of the year is $0).
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
1 Nov 1 Debit Credit Cash 6000 Unearned Revenue 6000 Receive cash in advance ...View the full answer
Answered By
Anjali Arora
Having the experience of 16 years in providing the best solutions with a proven track record of technical contribution and appreciated for leadership in enhancing team productivity, deliverable quality, and customer satisfaction. Expertise in providing the solution in Computer Science, Management, Accounting, English, Statistics, and Maths.
Also, do website designing and Programming.
Having 7 yrs of Project Management experience.
100% satisfactory answers.
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Question Posted:
Related Video
Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It can be thought of as a \"prepayment\" for goods or services that a person or company is expected to supply to the purchaser at a later date. As a result of this prepayment, the seller has a liability equal to the revenue earned until the good or service is delivered. This liability is noted under current liabilities, as it is expected to be settled within a year.
Students also viewed these Accounting questions
-
Question 3 Find the equation of the plane containing the point P(0, 2, 5) and the line r(t) =(2, 1, 5) + t(2, -3, -2). [Hint: First find two vectors parallel to the plane (that is, find two vectors...
-
A vehicle can be purchased by paying $27 000 now, or it can be leased by paying $725 per month for the next four years, with the first payment due on the day of signing the lease. What nominal annual...
-
Question 1. This question is based on a journal article that appeared in the New England Journal of Medicine: Gawande AA et al., "Risk factors for retained instruments and sponges after surgery."...
-
Pelicans tuck their wings and free fall straight down when diving for fish. Suppose a pelican starts it dive from a height of 16.0m and cannot change its path once committed. If it takes a fish 0.20s...
-
What is population ecology?
-
Sleekfon and Sturdyfon are two major cell phone manufacturers that have recently merged. Their current market sizes are as shown in Table 5-8. All demand is in millions of units. Table 5-8 Global...
-
What elements must be proven in order to be successful in a negligence suit? Illustrate your answer with a case (the facts of the case can be hypothetical).
-
McIver's Swimwear Distributors is a relatively small, privately held swimwear distribution company that operates in the Midwest and handles several product lines, including footwear, clothing, and...
-
During the month of January, Learnstream Company conducted the following transactions: Jan 1 Jan 2 Jan 5 Jan 17 Jan 20 Customers purchased $1,200 in gift cards. Sold merchandise for $8,600 cash plus...
-
Poindexter claims that the real cheating occurs when we increase power by increasing the likelihood that results will be significant. He reasons that if we are more likely to reject H 0 , then we are...
-
Beaver Construction purchases new equipment for $50,400 cash on April 1, 2015. At the time of purchase, the equipment is expected to be used in operations for seven years (84 months) and have no...
-
Fighting Irish Incorporated pays its employees $5,600 every two weeks ($400/day). The current two-week pay period ends on December 28, 2015, and employees are paid $5,600. The next two-week pay...
-
Access the data Property_Taxes from the text website. a. Estimate a homes property taxes as a linear function of the size of the home (measured by its square footage). b. What proportion of the...
-
Write an assembly language program that asks the user to enter an integer dollar amount between 1 and 3,000. Your program should display the corresponding class description using the following table....
-
Solve the recurrence relation an = 7an-18an-2-9.2", with initial conditions ao = 5, a = 10. Show all your work.
-
Write a method (pseudocode) to reverse the queue using another empty queue. You may only use queue operations such as enqueue(), dequeue(), and size(). No other data structure can be used other than...
-
Which line of the following author reading segment would causes issues? 1: bookArr[i].authors = calloc(bookArr[i].numAuthors, sizeof(author_t)); 2: for (j=0; j < bookArr[i].numAuthors; j++) { 3: 4:...
-
Suppose that the cost in dollars for a weekly production of x tons of sugar is given by the following function (a) Find the marginal cost. 1 C(x) = x+3x+200. (b) Find the cost and marginal cost when...
-
What is the molar solubility of AgCl in 0.100 M NH 3 (aq)?
-
Let (x) = x 2 - 9, g(x) = 2x, and h(x) = x - 3. Find each of the following. (((--) 2
-
Use the procedure in Section 14. 2.4.1 and download and record four soil moisture readings for May 1, 2021, or the closest date that data is available, in the State of Colorado. Select your own 36-km...
-
If your school has a subscription to the FASB Codification, go to aaahq.org/ asclogin.cfm to log in and prepare responses to the following. (a) What is the definition of current liabilities? (b) What...
-
Explain how IFRS defines a contingent liability and give an example.
-
Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the accounting for liabilities.
-
Zach Ltd. produced the following data for the year 2015 - o Interest Income $4,650,000 o Capital Gain realized $50,000 o Dividend Income from company's 15% ownership in XYZ Ltd. $65,000 o Corporate...
-
A project requires an increase in net working capital of $150,000 at time 0 that will be recovered at the end of its 10 year life. If the opportunity cost of capital is 8%, what is the effect of NWC...
-
A firm is 40% financed by debt with a yield-to-maturity of 8.5%. The equity has a beta of 1.3, the market risk premium is 8.4% and the risk-free rate is 3.8%. What is the firm's WACC if the tax rate...
Study smarter with the SolutionInn App