For each separate case, record an adjusting entry (f necessary). a. Lonzo Company receives $6,000 cash in advance for six months of recycling services on September 1 and records it by debiting Cash and crediting Unearned Revenue for $6,000. Lonzo provides recycling services monthly as promised. Prepare the December 31 year-end adjusting entry that Lonzo records for the work performed from September 1 through December 31. b. On October 20, Milwaukee Bucks sold a 10 game ticket package for $400 and recorded Unearned Revenue. By December 31, 4 of the 10 games had been played. Record the December 31 year-end adjusting entry that the Bucks record for the 40% of revenue earned on the $400 ticket package.

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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For each separate case, record an adjusting entry (f necessary).
a. Lonzo Company receives $6,000 cash in advance for six months of recycling services on September 1 and records it by debiting
Cash and crediting Unearned Revenue for $6,000. Lonzo provides recycling services monthly as promised. Prepare the
December 31 year-end adjusting entry that Lonzo records for the work performed from September 1 through December 31.
b. On October 20, Milwaukee Bucks sold a 10 game ticket package for $400 and recorded Unearned Revenue. By December 31, 4
of the 10 games had been played. Record the December 31 year-end adjusting entry that the Bucks record for the 40% of
revenue earned on the $400 ticket package.
Transcribed Image Text:For each separate case, record an adjusting entry (f necessary). a. Lonzo Company receives $6,000 cash in advance for six months of recycling services on September 1 and records it by debiting Cash and crediting Unearned Revenue for $6,000. Lonzo provides recycling services monthly as promised. Prepare the December 31 year-end adjusting entry that Lonzo records for the work performed from September 1 through December 31. b. On October 20, Milwaukee Bucks sold a 10 game ticket package for $400 and recorded Unearned Revenue. By December 31, 4 of the 10 games had been played. Record the December 31 year-end adjusting entry that the Bucks record for the 40% of revenue earned on the $400 ticket package.
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