On October 1, Year 1, Josh Smith, attorney, accepted a $10,800 cash advance from his client, James Company, for services to be performed over the next six months. Required a. Record the deferral and the related December 31, Year 1, adjustment for Josh Smith in an accounting equation. b. Record the deferral and the related December 31, Year 1, adjustment for James Company in an accounting equation. Complete this question by entering your answers in the tabs below. S Required A Required B Record the deferral and the related December 31, Year 1, adjustment for Josh Smith in an accounting equation. Note: Do not round intermediate calculations. Enter any decreases to account balances with a minus sign. Not all cells require entry. JOSH SMITH, ATTORNEY - Year 1 Assets = Event Cash = Liabilities Unearned Revenue + Stockholders' Equity Common + + Stock Retained Earnings Cash collected = + + Revenue earned = + + Required A Required B

On October 1, Year 1, Josh Smith, attorney, accepted a $10,800 cash advance from his client, James Company, for services to be performed over the next six months. Required a. Record the deferral and the related December 31, Year 1, adjustment for Josh Smith in an accounting equation. b. Record the deferral and the related December 31, Year 1, adjustment for James Company in an accounting equation. Complete this question by entering your answers in the tabs below. S Required A Required B Record the deferral and the related December 31, Year 1, adjustment for Josh Smith in an accounting equation. Note: Do not round intermediate calculations. Enter any decreases to account balances with a minus sign. Not all cells require entry. JOSH SMITH, ATTORNEY - Year 1 Assets = Event Cash = Liabilities Unearned Revenue + Stockholders' Equity Common + + Stock Retained Earnings Cash collected = + + Revenue earned = + + Required A Required B

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter4: Completing The Accounting Cycle

Section: Chapter Questions

Problem 5CP

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. Assume that a lawyer bills her clients $15,000 on June 30, for services rendered during June. The lawyer collects $8,500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue? A. June, $15,000; July, $0; and August, $0 B. June, $0; July $6,500; and August, $8,500 C. June, $8,500; July $6,500; and August, $0 D. June, $0; July, $8,500; and August, $6,500
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On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow. DATE TRANSACTIONS July 1 Signed an agreement with Carter Corp. to provide accounting and tax services for one year at $5,900 per month; received the entire fee of $70,800 in advance. 1 Purchased office equipment for $17,000 from Office Outfitters; issued a two-month, 12 percent note in payment. The equipment is estimated to have a useful life of six years and a $1,160 salvage value. The equipment will be depreciated using the straight-line method. Record the adjusting journal entries that must be made on July 31, 2019. 1) Record the adjustment for accounting fees earned. 2) Record the adjustment for interest on the note payable. Date General Journal Debit Credit Jul 31, 2019
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