Boat yard inc. repairs, cleans, and stores boats for customers. They are preparing monthly financial statements for November 30, 2018 using accrual accounting. On November 30, the Boat yard cleaned three boats but did not record the service fees of $33,300, paid $2,400 cash for a radio ad to air in January 2019, the inventory count showed usage of $18,900 in boat supplies, and wage expenses were $4,000.  1.)what is the adjusting entry to accrued revenues earned? 2.)Prepare an income statement for Boat yard inc for the month ended November 30, 2018.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

Boat yard inc. repairs, cleans, and stores boats for customers. They are preparing monthly financial statements for November 30, 2018 using accrual accounting. On November 30, the Boat yard cleaned three boats but did not record the service fees of $33,300, paid $2,400 cash for a radio ad to air in January 2019, the inventory count showed usage of $18,900 in boat supplies, and wage expenses were $4,000. 

1.)what is the adjusting entry to accrued revenues earned?

2.)Prepare an income statement for Boat yard inc for the month ended November 30, 2018.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education