Answer:
Zips Storage
Journal Entries for Service Revenue:
a. Debit Cash Account $144,100
Debit Accounts Receivable $57,200
Credit Service Revenue $201,300
To record provision of storage services for cash and on account.
l. Debit Deferred Service Revenue $12,800
Debit Service Revenue $12,800
To record provision of storage services, cash received in advance.
Explanation:
Total Service Revenue for the year:
Cash Account $144,100
Accounts Receivable $57,200
Deferred Revenue $12,800
Total $214,100
Deferred Revenue Balance:
Beginning balance $6,800
Advance from customers $13,900
less Service Rendered $12,800
Ending balance $7,900
