More info a. Business receives $2,800 on January 1 for 10-month service contract for the period January 1 through October 31. (Assume services are performed evenly each month throughout the term of the contract.) b. Total salaries for all employees is $3,100 per month. Employees are paid on the 1st and 15th of the month. C. Work performed but not yet billed to customers for the month is $1,400. d. The company pays interest on its $5,000, 9% note payable of $38 on the first day of each month.
More info a. Business receives $2,800 on January 1 for 10-month service contract for the period January 1 through October 31. (Assume services are performed evenly each month throughout the term of the contract.) b. Total salaries for all employees is $3,100 per month. Employees are paid on the 1st and 15th of the month. C. Work performed but not yet billed to customers for the month is $1,400. d. The company pays interest on its $5,000, 9% note payable of $38 on the first day of each month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:More info
a. Business receives $2,800 on January 1 for 10-month service contract for the period
January 1 through October 31. (Assume services are performed evenly each month
throughout the term of the contract.)
b. Total salaries for all employees is $3,100 per month. Employees are paid on the 1st
and 15th of the month.
C. Work performed but not yet billed to customers for the month is $1,400.
d. The company pays interest on its $5,000, 9% note payable of $38 on the first day of
each month.
Transcribed Image Text:Consider the following situations:
i (Click the icon to view the situations.)
Assume the company records adjusting entries monthly. Journalize the adjusting entries needed as of
January 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry
table.)
a. Business receives $2,800 on January 1 for 10-month service contract for the period January 1 through
October 31. (When the cash was received on January 1, assume that a liability account was credited.
Assume services are performed evenly each month throughout the term of the contract.)
Date
Accounts and Explanation
Debit
Jan. 31
Credit
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