1. Clean & Clear Water offers pool and spa cleaning services to hotels and residential customers. Commercial (hotels) customers pay on a monthly contract basis, while residential customers pay an hourly rate based on services provided In July 2019, Clean & Clear Water signed a 6-month contract with Travel Holidays to provide pool and spa cleaning services for 3 hotel sites. The contract price of $48,000 was collected on July 1, 2019. The services will be provided evenly over the 6 months. During July 2019, Clean & Clear Water also provided 80 hours of residential pool services at $30 per hour. These services have not yet been billed to residential customers. The company uses the account, Fees Receivable, to reflect amounts due but not yet billed. Prepare the entry on July 1, 2019 to record the receipt of $48,000 cash related to the contract with Travel Holidays. b. Prepare the adjusting entry to be made on July 31, 2019 for the contract work performed for Travel Holidays during the month. c. Prepare the adjusting entry needed on July 31, 2019 to reflect the residential pool services performed during the month. a. 2. On January 18, 2019, Big City Co, paid $36,000 for a two-year insurance premium that covers February 1, 2019 through January 31, 2021. Urban Pro's year-end is March 31, 2019. What entry is made on January 18, 2019? What adjusting entry should be made on March 31, 2019 before the financial statements are prepared for the year ending March 31, 2019? a. b.
1. Clean & Clear Water offers pool and spa cleaning services to hotels and residential customers. Commercial (hotels) customers pay on a monthly contract basis, while residential customers pay an hourly rate based on services provided In July 2019, Clean & Clear Water signed a 6-month contract with Travel Holidays to provide pool and spa cleaning services for 3 hotel sites. The contract price of $48,000 was collected on July 1, 2019. The services will be provided evenly over the 6 months. During July 2019, Clean & Clear Water also provided 80 hours of residential pool services at $30 per hour. These services have not yet been billed to residential customers. The company uses the account, Fees Receivable, to reflect amounts due but not yet billed. Prepare the entry on July 1, 2019 to record the receipt of $48,000 cash related to the contract with Travel Holidays. b. Prepare the adjusting entry to be made on July 31, 2019 for the contract work performed for Travel Holidays during the month. c. Prepare the adjusting entry needed on July 31, 2019 to reflect the residential pool services performed during the month. a. 2. On January 18, 2019, Big City Co, paid $36,000 for a two-year insurance premium that covers February 1, 2019 through January 31, 2021. Urban Pro's year-end is March 31, 2019. What entry is made on January 18, 2019? What adjusting entry should be made on March 31, 2019 before the financial statements are prepared for the year ending March 31, 2019? a. b.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I’m not quite sure if i understand question 1 a. and 1b. Can you please help or explain?
Transcribed Image Text:1. Clean & Clear Water offers pool and spa cleaning services to hotels and residential customers.
Commercial (hotels) customers pay on a monthly contract basis, while residential customers pay
an hourly rate based on services provided
In July 2019, Clean & Clear Water signed a 6-month contract with Travel Holidays to provide pool
and spa cleaning services for 3 hotel sites. The contract price of $48,000 was collected on July 1,
2019. The services will be provided evenly over the 6 months.
During July 2019, Clean & Clear Water also provided 80 hours of residential pool services at $30
per hour. These services have not yet been billed to residential customers. The company uses the
account, Fees Receivable, to reflect amounts due but not yet billed.
Prepare the entry on July 1, 2019 to record the receipt of $48,000 cash related to the contract
with Travel Holidays.
b. Prepare the adjusting entry to be made on July 31, 2019 for the contract work performed for
Travel Holidays during the month.
c. Prepare the adjusting entry needed on July 31, 2019 to reflect the residential pool services
performed during the month.
a.
2. On January 18, 2019, Big City Co, paid $36,000 for a two-year insurance premium that covers
February 1, 2019 through January 31, 2021. Urban Pro's year-end is March 31, 2019.
What entry is made on January 18, 2019?
What adjusting entry should be made on March 31, 2019 before the financial statements are
prepared for the year ending March 31, 2019?
a.
b.
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