84) Double-A Public Relations Firm got a new client on September 1. Double-A will provide services to the new client at a rate of $250 per month for a three-month period beginning September 1. Double-A required the client to pay for the entire period in advance. Please show the journal entry for the cash collected by Double-A on September 1.
85) Double-A Public Relations Firm got a new client on September 1. Double-A agreed to provide services to the new client at a rate of $250 per month for a three-month period beginning September 1. Double-A required the client to pay for the entire period on September 1. On September 30, Double-A needs to make an adjusting entry. Please provide that adjusting entry.
86) Fleet Tutoring Services borrowed $12,000 and signed a one-year note payable on December 1, 2010. The note bears interest at a rate of 5% per year. Fleet will repay the principal amount of $12,000 plus one year's interest of $600 on November 30 of the following year. Fleet accrues interest expense every month. What adjusting entry is needed on December 31?
87) Lucent Electrical Repair, Inc. performs services costing $3,000 on January 12 and invoices the customer. Lucent receives the $3,000 on January 31. What entry is made on January 12 when services were rendered?
88) Lucent Electrical Repair, Inc. performs services costing $3,000 on January 12 and invoices the customer. Lucent receives the $3,000 on January 31. What entry is made on January 31 when the cash was received?
89) Real Losers, Inc., a diet magazine, collected $360,000 in subscription revenue in May. Each subscriber will receive an issue of the magazine for each of the next 12 months, beginning with the June issue. The company uses the accrual method of accounting. What entry is recorded when the cash is collected in May?
90) Real Losers, Inc., a diet magazine, collected $360,000 in subscription revenue in May. Each subscriber will receive an issue of the magazine for each of the next 12 months, beginning with the June issue. The company uses the accrual method of accounting. What adjusting entry is needed at June 30?
91) On January 1, 2012, Lexmark Corporation's Unearned revenue account had a credit balance of $3,000 from amounts collected in 2011 but not yet earned. During January, 2012, the company collected $22,000 from new customers for services to be performed in the future. During January, Lexmark completed all of the services that were paid for in the prior year, and also for all the amounts collected during January except for a single $5,000 amount from one of its customers. What entry would be needed at January 31 to adjust the balance in Unearned revenue?
Learning Objective 3-5
1) The accountant for Jones Auto Repair Corporation failed to make an adjusting entry to record $5,000 of unpaid salaries for the last 2 weeks of the year. Which of the following is TRUE?
A) Net income is overstated.
B) Total assets are understated.
C) Total liabilities are overstated.
D) Total assets are overstated.
2) Financial statements are prepared from a(n):
A) general journal.
B) general ledger.
C) unadjusted trial balance.
D) adjusted trial balance.