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lisov135 [29]
3 years ago
5

On August 1 of Year 1 Accounting Associates (AA) collected $1,200 cash for consulting services to be provided for one year begin

ning immediately. Based on this information, which of the following show how the required adjustment on December 31, Year 1 would affect AA’s ledger accounts?a). Revenue $500 Unearned revenue $500 b) Revenue $700 Unearned revenue $700 c) Unearned Revenue $500 Revenue $500 d) Unearned revenue $700 Revenue $700
Business
1 answer:
igor_vitrenko [27]3 years ago
6 0

Answer:

c) Unearned Revenue $ 500, Revenue $ 500

Explanation:

When the cash was received on August 01, no accounting services were provided so the  entry would have been:

Cash Debit                                 $ 1,200

Unearned revenue Credit                          $  1,200

Unearned Revenue is a liability account

On December 31, a recognition needs to be made for the services revenue earned and hence the amount for 5 months amounting is debited to  unearned revenue and revenue credited with $ 500.  

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Journalizing Business Transactions Prepare journal entries for each of the following transactions.
shepuryov [24]

Answer:

a.

Cash                                     $1000 Dr

    Common stock                         $1000 Cr

b.

Purchases                          $500 Dr

       Cash                                  $500 Cr

c.

Accounts Receivable               $2000 Dr

        Sales Revenue                      $2000 Cr

d.

Cost of Goods Sold                $500 Dr

        Inventory Account                $500 Cr

e.

Cash                                      $2000 Dr

    Accounts Receivable            $2000 Cr

Explanation:

a.

The cash received as a result of issuing shares is debited as cash is increasing while as the capital is increasing so common stock is credited.

b.

The inventory is purchased for cash so cash is credited and purchases are debited.

c.

The sale of inventory on credit means a debit to the accounts receivable account for the amount of sale and a credit to sales revenue.

d.

When inventory is purchased, we debit the purchases account and credit either cash or accounts payable.

Later on, we transfer the purchases to the inventory amount as it is purchased for the intention of sale. Thus, we credit the purchases account and debit the inventory account.

When a sale is made, we debit the cost of goods sold by the amount of inventory sold and credit the inventory account.

e.

Cash is received so it will be debit and accounts receivable be credited.

4 0
3 years ago
PLZZZ HELLLPP
Natalija [7]

Answer:

Nursing

Explanation:

I took the test and got it right

4 0
3 years ago
In the context of the 5S principles, _____ means to keep a process going through training, communication, and organizational str
alina1380 [7]

In the context of the 5S principles, <u>sustain </u>means to keep a process going through training, communication, and organizational structures.

<h3>What is 5S principles? </h3>

5s principles can be defined as the principle that help to show the appropriate way a work place or work environment should be or should be arranges .

The 5S principle are:

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  • Standardize
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Therefore In the context of the 5S principles, <u>sustain </u>means to keep a process going through training, communication, and organizational structures.

Learn more about 5s principles here:brainly.com/question/10001029

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5 0
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How many barrels of oil are in the strategic petroleum reserve.
yaroslaw [1]

Answer:

714 million barrels

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Jack recommends his new keurig coffee machine to his friend jill. jill buys her own keurig and loves it - studies show that she
Elza [17]
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