DEFERRED REVENUE ADJUSTING ENTRIES Olney Cleaning Company had the following items that require adjustment at year-end. a. For one cleaning contract, $14,000 cash was received in advance. The cash was credited to unearned revenue upon receipt. At year-end, $3,750 of the service revenue was still unearned. b. For another cleaning contract, $9,500 cash was received in advance and credited to unearned revenue upon receipt. At year-end, $4,300 of the services had been provided.
DEFERRED REVENUE ADJUSTING ENTRIES Olney Cleaning Company had the following items that require adjustment at year-end. a. For one cleaning contract, $14,000 cash was received in advance. The cash was credited to unearned revenue upon receipt. At year-end, $3,750 of the service revenue was still unearned. b. For another cleaning contract, $9,500 cash was received in advance and credited to unearned revenue upon receipt. At year-end, $4,300 of the services had been provided.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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DEFERRED REVENUE ADJUSTING ENTRIES
Olney Cleaning Company had the following items that require adjustment at year-end.
a. For one cleaning contract, $14,000 cash was received in advance. The cash was credited to unearned revenue upon receipt. At year-end, $3,750 of the service revenue was still unearned.
b. For another cleaning contract, $9,500 cash was received in advance and credited to unearned revenue upon receipt. At year-end, $4,300 of the services had been provided.
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