Question

Ricardo construction began operations on december 1. in setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance. prepare journal entries for items a through d and the adjusting entries as of its december 31 period-end for items e through g.

Answer 1

Answer:

Answer to every question is in the explanation section

Explanation:

a) On December 1 supplies are purchased for 2000$ cash.

b) Insurance premiums of the company were prepared for $1,540 cash on December 2.

c) The company received an advance payment of 13000$ cash on December 15.

d)  For a remodeling work, the company received a payment of 3700$ cash in January.

e) The company has $1,840 of supplies accessible.

f) Insurance policy analysis shows that 340$ insurance coverage has expired.

3) 5570$ advance cash was received for a remodeling project