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lesya692 [45]
2 years ago
8

A lawyer collected $720 of legal fees in advance. He erroneously debited Cash for $270 and credited Service Revenue for $270. Th

e correcting entry is A. Cash 450 Service Revenue 270 Unearned Service Revenue 720 B. Cash 720 Service Revenue 720 C. Cash 450 Accounts Receivable 270 Unearned Service Revenue 720 D. Cash 450 Accounts Receivable 450
Business
1 answer:
IRISSAK [1]2 years ago
4 0

Answer:

Option C is correct.

The correcting entry is <u>Cash 450 Accounts Receivable 270 Unearned Service Revenue 720</u>

Explanation:

1. Cash received is $ 720 and the amount booked is $ 270,

Hence, Cash Balance of $ 720 - $ 270 which is $ 450 is recorded.

2. Accounts Receivable Account was wrongly credited and hence is debited to reverse the effect.

3. Unearned Service revenue account was not recorded and hence is now recorded.

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On the last day of October, Wicker Company borrows $120,000 on a bank note due in 90 days (3 months) at %11 percent. Interest is
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Answer:

interest expense 3,000 debit

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Explanation:

We will recognize the accrued interest for the period Nov 1st to Dec 31th

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3 years ago
A company uses the declining-balance method of calculating depreciation expense.On January 1, the company buys machinery for $75
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Book value for the 3rd year = $ 750,000 - $366,000 = $ 384,000

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Depreciation expense for the 3rd year =    20 % $ 480,000= $ 96,000

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3 years ago
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Positive corporate brand image.

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