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andreyandreev [35.5K]
3 years ago
4

For each separate case, record an adjusting entry (if necessary).

Business
1 answer:
storchak [24]3 years ago
4 0

The December 31 year-end Entries to adjust the Revenue and the Unearned Revenue accounts for the two companies are:

a. Lonzo Company:

Debit Unearned Revenue $2,000

Credit Revenue $2,000

To record the earned revenue for 4 months.

b. Milwaukee Bucks Company:

Debit Unearned Revenue $80

Credit Revenue $80

To record the 40% earned revenue.

Data and Analysis:

December 31:

a. Lonzo Company:

Unearned Revenue $2,000 Revenue $2,000 ($3,000 x 4/5)

b. Milwaukee Bucks Company:

Unearned Revenue $80 Revenue $80 ($2,000 x 40%)

Related links for adjusting unearned revenue at year-end at brainly.com/question/18882009

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