On November 1, 2024, SwiftTech Services received $30,000 in advance for a 6-month service contract. By December 31, 2024, two months of service have been provided. What adjusting entry should be recorded on December 31?

On November 1, 2024, SwiftTech Services received $30,000 in advance for a 6-month service contract. By December 31, 2024, two months of service have been provided. What adjusting entry should be recorded on December 31?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11Q: If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium,...

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