Zuhoor Muscat Company is a software company. On 1 March 2019, Zuhoor Muscat Company agreed to provide service for Sadaf Oman Company of RO 25,200 for the next 18 months. According to the agreement Zuhoor Muscat Company is expected to finish fixing the first part of software at 30 September 2019, which is the company adjusting date. Zuhoor Muscat Company will only receive payment from Sadaf Oman Company by the end of the 18 months agreement. The adjusting entry in relation to the above transaction will include (assume amount is distributed equally between the 18-months period): Select one: a. Cr. Accounts Receivable RO 9,800 b. Cr Service Revenue RO 9,800 C. Dr Service Revenue RO 25,200 d Dr. Unearned Service Revenue RO 25, 200
Zuhoor Muscat Company is a software company. On 1 March 2019, Zuhoor Muscat Company agreed to provide service for Sadaf Oman Company of RO 25,200 for the next 18 months. According to the agreement Zuhoor Muscat Company is expected to finish fixing the first part of software at 30 September 2019, which is the company adjusting date. Zuhoor Muscat Company will only receive payment from Sadaf Oman Company by the end of the 18 months agreement. The adjusting entry in relation to the above transaction will include (assume amount is distributed equally between the 18-months period): Select one: a. Cr. Accounts Receivable RO 9,800 b. Cr Service Revenue RO 9,800 C. Dr Service Revenue RO 25,200 d Dr. Unearned Service Revenue RO 25, 200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Zuhoor Muscat Company is a software company. On 1 March 2019, Zuhoor Muscat Company agreed to
provide service for Sadaf Oman Company of RO 25,200 for the next 18 months. According to the agreement
Zuhoor Muscat Company is expected to finish fixing the first part of software at 30 September 2019, which is
the company adjusting date. Zuhoor Muscat Company will only receive payment from Sadaf Oman
Company by the end of the 18 months agreement. The adjusting entry in relation to the above transaction
will include (assume amount is distributed equally between the 18-months period):
Select one:
a. Cr. Accounts Receivable RO 9,800
b. Cr Service Revenue RO 9,800
C. Dr Service Revenue RO 25,200
d Dr. Unearned Service Revenue RO 25, 200
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education