On December 20, a company agrees to perform 30 days of consulting services for a client at a rate of $1,020 per day, with payment to be received on January 19, at the end of the 30 days. a. As of December 31, the company has earned (but not yet recorded) 11 days of the 30-day contract. Prepare the required December 31 adjusting entry. b. On January 19, the company received $30,600 as full payment for the work completed in December and January. Prepare the journal entry to record the cash receipt. The company does not prepare reversing entries.

On December 20, a company agrees to perform 30 days of consulting services for a client at a rate of $1,020 per day, with payment to be received on January 19, at the end of the 30 days. a. As of December 31, the company has earned (but not yet recorded) 11 days of the 30-day contract. Prepare the required December 31 adjusting entry. b. On January 19, the company received $30,600 as full payment for the work completed in December and January. Prepare the journal entry to record the cash receipt. The company does not prepare reversing entries.

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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