Master Architect designs houses for various clients. Its unadjusted trial balance as of December 31, 2016 showed, among others, Unearned Professional Fees of P350,000 representing two accounts collected in advance: November 10 Monson account, P200,000 and December 15 Samson account, P150,000. It takes 50 days for a design to be finished and delivered. Required: a. Prepare the entry to adjust the unearned revenue and recognize Professional Fees. b. Make postings to the general ledger accounts appearing below.
Master Architect designs houses for various clients. Its unadjusted trial balance as of December 31, 2016 showed, among others, Unearned Professional Fees of P350,000 representing two accounts collected in advance: November 10 Monson account, P200,000 and December 15 Samson account, P150,000. It takes 50 days for a design to be finished and delivered. Required: a. Prepare the entry to adjust the unearned revenue and recognize Professional Fees. b. Make postings to the general ledger accounts appearing below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Master Architect designs houses for various clients. Its unadjusted trial balance as of December 31, 2016 showed, among others, Unearned Professional Fees of P350,000 representing two accounts collected in advance: November 10 Monson account, P200,000 and December 15 Samson account, P150,000. It takes 50 days for a design to be finished and delivered.
Required:
a. Prepare the entry to adjust the unearned revenue and recognize Professional Fees.
b. Make postings to the general ledger accounts appearing below.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education