On August 1, 2024, Pinnacle Consulting received $48,000 in advance for a 12- month consulting contract. By December 31, 2024, five months of consulting services have been provided. • What adjusting entry should be recorded on December 31, 2024?

On August 1, 2024, Pinnacle Consulting received $48,000 in advance for a 12- month consulting contract. By December 31, 2024, five months of consulting services have been provided. • What adjusting entry should be recorded on December 31, 2024?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 25E: Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and...

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Given the solution and accounting question

On August 1, 2024, Pinnacle Consulting received $48,000 in advance for a 12-
month consulting contract. By December 31, 2024, five months of consulting
services have been provided.
•
What adjusting entry should be recorded on December 31, 2024?

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