Deferred revenues Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry . Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned. To journalize: The entry on September 1, using the alternative method of deferred revenues.

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Answer 1

Question

Chapter 3, Problem 3.17SE

(1)

To determine

Deferred revenues

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

To journalize: The entry on September 1, using the alternative method of deferred revenues.

(2)

To determine

To record: The adjusting entry on December 31, 2018.

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Answer 2

Question

Chapter 3, Problem 3.17SE

(1)

To determine

Deferred revenues

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

To journalize: The entry on September 1, using the alternative method of deferred revenues.

(2)

To determine

To record: The adjusting entry on December 31, 2018.

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 3.17SE

(1)

To determine

Deferred revenues

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

To journalize: The entry on September 1, using the alternative method of deferred revenues.

(2)

To determine

To record: The adjusting entry on December 31, 2018.

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Answer 4

Question

Chapter 3, Problem 3.17SE

(1)

To determine

Deferred revenues

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

To journalize: The entry on September 1, using the alternative method of deferred revenues.

(2)

To determine

To record: The adjusting entry on December 31, 2018.

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 3.17SE

(1)

To determine

Deferred revenues

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

To journalize: The entry on September 1, using the alternative method of deferred revenues.

(2)

To determine

To record: The adjusting entry on December 31, 2018.

Answer 6

Chapter 3, Problem 3.17SE

(1)

To determine

Deferred revenues

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

To journalize: The entry on September 1, using the alternative method of deferred revenues.

Answer 7

Chapter 3, Problem 3.17SE

(1)

To determine

Deferred revenues

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

To journalize: The entry on September 1, using the alternative method of deferred revenues.

Answer 8

(2)

To determine

To record: The adjusting entry on December 31, 2018.

Answer 9

(2)

To determine

To record: The adjusting entry on December 31, 2018.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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To record: The adjusting entry on December 31, 2018.

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