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Crane Lawn Care Inc. (CLC) offers its customers two lawn maintenance services. One service is for a one-year maintenance plan at a cost of $220. Customers can earn a 5% discount from this price if they pay before CLC's calendar fiscal year for maintenance services to be performed in the following year. The second service offered by CLC is a three-year maintenance plan that sells for $570. The first year's maintenance service for this three-year plan will be delivered before CLC's fiscal year end. No discount for early payment is offered for the second plan. (a) Your answer is partially correct. Prepare the summary journal entry for the cash sale of 220 one-time plans for the current year, 100 discounted one-time plans for the following year, and 320 three-year maintenance plans. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Cash Service Revenue Unearned Revenue Debit 251,700 Credit

Crane Lawn Care Inc. (CLC) offers its customers two lawn maintenance services. One service is for a one-year maintenance plan at a cost of $220. Customers can earn a 5% discount from this price if they pay before CLC's calendar fiscal year for maintenance services to be performed in the following year. The second service offered by CLC is a three-year maintenance plan that sells for $570. The first year's maintenance service for this three-year plan will be delivered before CLC's fiscal year end. No discount for early payment is offered for the second plan. (a) Your answer is partially correct. Prepare the summary journal entry for the cash sale of 220 one-time plans for the current year, 100 discounted one-time plans for the following year, and 320 three-year maintenance plans. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Cash Service Revenue Unearned Revenue Debit 251,700 Credit

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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Crane Lawn Care Inc. (CLC) offers its customers two lawn maintenance services. One service is for a one-year maintenance plan at a cost of $220. Customers can earn a 5% discount from this price if they pay before CLC's calendar fiscal year for maintenance services to be performed in the following year. The second service offered by CLC is a three-year maintenance plan that sells for $570. The first year's maintenance service for this three-year plan will be delivered before CLC's fiscal year end. No discount for early payment is offered for the second plan. (a) Your answer is partially correct. Prepare the summary journal entry for the cash sale of 220 one-time plans for the current year, 100 discounted one-time plans for the following year, and 320 three-year maintenance plans. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Cash Service Revenue Unearned Revenue eTextbook and Media List of Accounts Save for Later Last saved 1 second ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Debit 251,700 Credit Attempts: 2 of 5 used Submit Answer
Transcribed Image Text:Crane Lawn Care Inc. (CLC) offers its customers two lawn maintenance services. One service is for a one-year maintenance plan at a cost of $220. Customers can earn a 5% discount from this price if they pay before CLC's calendar fiscal year for maintenance services to be performed in the following year. The second service offered by CLC is a three-year maintenance plan that sells for $570. The first year's maintenance service for this three-year plan will be delivered before CLC's fiscal year end. No discount for early payment is offered for the second plan. (a) Your answer is partially correct. Prepare the summary journal entry for the cash sale of 220 one-time plans for the current year, 100 discounted one-time plans for the following year, and 320 three-year maintenance plans. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Cash Service Revenue Unearned Revenue eTextbook and Media List of Accounts Save for Later Last saved 1 second ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Debit 251,700 Credit Attempts: 2 of 5 used Submit Answer
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