Required: 1. Prepare the adjusting journal entries needed at December 31. If an amount box does not require an entry, leave it blank. Dec. 31 Dec. 31 2. What is the effect on the financial statements if these adjusting entries are not made? In both of these cases, a liability (unearned service revenue) was originally created when cash was satisfied (prior to the revenue being earned). The adjusting entries period. If these adjusting entries were not made, revenue would be addition, the of revenue would result in an stockholders' equity will also be prior to the performance obligation being the previously created liability by the amount of revenue earned during the and liabilities (unearned revenue) would be In of net income. Finally, because revenue is then closed to Retained Earnings, 3. What is the balance in Unearned Service Revenue at December 31 related to the two cleaning contracts?

Required: 1. Prepare the adjusting journal entries needed at December 31. If an amount box does not require an entry, leave it blank. Dec. 31 Dec. 31 2. What is the effect on the financial statements if these adjusting entries are not made? In both of these cases, a liability (unearned service revenue) was originally created when cash was satisfied (prior to the revenue being earned). The adjusting entries period. If these adjusting entries were not made, revenue would be addition, the of revenue would result in an stockholders' equity will also be prior to the performance obligation being the previously created liability by the amount of revenue earned during the and liabilities (unearned revenue) would be In of net income. Finally, because revenue is then closed to Retained Earnings, 3. What is the balance in Unearned Service Revenue at December 31 related to the two cleaning contracts?

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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