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Bennington, Inc., collects cash from customers in advance and from other customers after the sale. Read the requirement. a. Journalize Bennington earning service revenue of $21,000 on account and then collecting $10,000 on account. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by recording Bennington earning $21,000 of service revenue on account. Journi Entry Date 2021 Date 2021 Accounts Next, record the entry to show Bennington collecting $10,000 cash for a portion of the revenue previously earned on account. Journal Entry Date 2021 Accounts Date 2021 Debit Accounts b. Journalize Bennington receiving $3,000 in advance and then earning $2,000 as service revenue. Start by recording Bennington's cash collections in advance of services being performed. Journal Entry Debit Accounts Credit Debit Credit Finally, record the entry to show Bennington earning $2,000 of the service revenue that was collected in advance. Journal Entry Debit Credit Credit Requirement Journalize the following transactions for Bennington: a. Accrued revenue. Some customers pay Bennington after Bennington has performed the service for the customer. During 2021, Bennington performed services for $21,000 on account and later received cash of $10,000 on account from these customers. b. Unearned revenue. A few customers pay Bennington in advance, and Bennington later performs the service for the customer. During 2021, Bennington collected $3,000 cash in advance and later earned $2,000 of this amount. Print Done X

Bennington, Inc., collects cash from customers in advance and from other customers after the sale. Read the requirement. a. Journalize Bennington earning service revenue of $21,000 on account and then collecting $10,000 on account. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by recording Bennington earning $21,000 of service revenue on account. Journi Entry Date 2021 Date 2021 Accounts Next, record the entry to show Bennington collecting $10,000 cash for a portion of the revenue previously earned on account. Journal Entry Date 2021 Accounts Date 2021 Debit Accounts b. Journalize Bennington receiving $3,000 in advance and then earning $2,000 as service revenue. Start by recording Bennington's cash collections in advance of services being performed. Journal Entry Debit Accounts Credit Debit Credit Finally, record the entry to show Bennington earning $2,000 of the service revenue that was collected in advance. Journal Entry Debit Credit Credit Requirement Journalize the following transactions for Bennington: a. Accrued revenue. Some customers pay Bennington after Bennington has performed the service for the customer. During 2021, Bennington performed services for $21,000 on account and later received cash of $10,000 on account from these customers. b. Unearned revenue. A few customers pay Bennington in advance, and Bennington later performs the service for the customer. During 2021, Bennington collected $3,000 cash in advance and later earned $2,000 of this amount. Print Done X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bennington, Inc., collects cash from customers in advance and from other customers after the sale. Read the requirement. a. Journalize Bennington earning service revenue of $21,000 on account and then collecting $10,000 on account. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by recording Bennington earning $21,000 of service revenue on account. Journl Entry Date 2021 Date 2021 Accounts Next, record the entry to show Bennington collecting $10,000 cash for a portion of the revenue previously earned on account. Journal Entry Date 2021 Accounts Date 2021 Debit Accounts b. Journalize Bennington receiving $3,000 in advance and then earning $2,000 as service revenue. Start by recording Bennington's cash collections in advance of services being performed. Journal Entry Debit Accounts Credit Debit Credit Finally, record the entry to show Bennington earning $2,000 of the service revenue that was collected in advance. Journal Entry Debit Credit Credit CO Requirement Journalize the following transactions for Bennington: a. Accrued revenue. Some customers pay Bennington after Bennington has performed the service for the customer. During 2021, Bennington performed services for $21,000 on account and later received cash of $10,000 on account from these customers. b. Unearned revenue. A few customers pay Bennington in advance, and Bennington later performs the service for the customer. During 2021, Bennington collected $3,000 cash in advance and later earned $2,000 of this amount. Print - X Done
Transcribed Image Text:Bennington, Inc., collects cash from customers in advance and from other customers after the sale. Read the requirement. a. Journalize Bennington earning service revenue of $21,000 on account and then collecting $10,000 on account. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by recording Bennington earning $21,000 of service revenue on account. Journl Entry Date 2021 Date 2021 Accounts Next, record the entry to show Bennington collecting $10,000 cash for a portion of the revenue previously earned on account. Journal Entry Date 2021 Accounts Date 2021 Debit Accounts b. Journalize Bennington receiving $3,000 in advance and then earning $2,000 as service revenue. Start by recording Bennington's cash collections in advance of services being performed. Journal Entry Debit Accounts Credit Debit Credit Finally, record the entry to show Bennington earning $2,000 of the service revenue that was collected in advance. Journal Entry Debit Credit Credit CO Requirement Journalize the following transactions for Bennington: a. Accrued revenue. Some customers pay Bennington after Bennington has performed the service for the customer. During 2021, Bennington performed services for $21,000 on account and later received cash of $10,000 on account from these customers. b. Unearned revenue. A few customers pay Bennington in advance, and Bennington later performs the service for the customer. During 2021, Bennington collected $3,000 cash in advance and later earned $2,000 of this amount. Print - X Done
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