To determine Identify the correct adjusting entry needed on December 31, 2021 for the given transaction. Explanation Deferred revenue: It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed. Justification for the correct answer: Option b: The company has to debit deferred revenue with (2) $2,000 for the service rendered during 2 months from November 1, 2021 to December 31, 2021. Company has to reduce the deferred revenue amount only by $2,000, because the company can adjust only the realized amount for the service provided while making adjusting entry. Working Notes: Calculate the deferred revenue per month: Deferred revenue per month = Deferred revenue received 6 months = $ 6 , 000 6 = $ 1 , 000 (1) Calculate the amount of deferred revenue has to be adjusted on December 31, 2021: Deferred revenue for

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ISBN: 9781260847826

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Publisher: INTER MCG

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Chapter 3 Solutions

FINANCIAL ACCOUNTING

Ch. 3 - Prob. 1SSQ Ch. 3 - 2. On January 17, Papa’s Pizza signs a contract...Ch. 3 - 3. Refer to the information in Self-Study Question...Ch. 3 - 4. Refer to the information in Self-Study...Ch. 3 - 5. Which of the following is not a characteristic...Ch. 3 - d. Are recorded at the end of the accounting...Ch. 3 - 7. A company owes employee salaries of $5,000 on...Ch. 3 - Prob. 8SSQ Ch. 3 - 9. An adjusted trial balance Lists all accounts...Ch. 3 - Prob. 10SSQ

Ch. 3 - Prob. 11SSQ Ch. 3 - Prob. 12SSQ Ch. 3 - Prob. 13SSQ Ch. 3 - Prob. 14SSQ Ch. 3 - Prob. 15SSQ Ch. 3 - After completing each requirement, check your...Ch. 3 - Applying Excel #3-2 A company reports the...Ch. 3 - 1. Discuss the major principle that describes...Ch. 3 - Prob. 2RQ Ch. 3 - Prob. 3RQ Ch. 3 - Prob. 4RQ Ch. 3 - LO3–2 Rip Side of Question 7 5. Executive Lawn...Ch. 3 - Prob. 6RQ Ch. 3 - Prob. 7RQ Ch. 3 - Prob. 8RQ Ch. 3 - Prob. 9RQ Ch. 3 - Prob. 10RQ Ch. 3 - Prob. 11RQ Ch. 3 - Prob. 12RQ Ch. 3 - Prob. 13RQ Ch. 3 - Prob. 14RQ Ch. 3 - Prob. 15RQ Ch. 3 - Prob. 16RQ Ch. 3 - LO3–3 17. Global Printing publishes several types...Ch. 3 - Prob. 18RQ Ch. 3 - Prob. 19RQ Ch. 3 - Prob. 20RQ Ch. 3 - Prob. 21RQ Ch. 3 - Prob. 22RQ Ch. 3 - Prob. 23RQ Ch. 3 - Prob. 24RQ Ch. 3 - Prob. 25RQ Ch. 3 - Prob. 26RQ Ch. 3 - Prob. 27RQ Ch. 3 - Prob. 28RQ Ch. 3 - Determine revenues to be recognized (LO3–1) BE3–1...Ch. 3 - BE3–2 Below are transactions for Bronco...Ch. 3 - BE3–3 Hoya Corporation reports the following...Ch. 3 - Analyze the impact of transactions on the balance...Ch. 3 - Determine accrual-basis and cash-basis net Income...Ch. 3 - BE3–6 At the beginning of May, Golden Gopher...Ch. 3 - Record the adjusting entry for prepaid rent...Ch. 3 - BE3–8 Mountaineer Excavation operates in a...Ch. 3 - Record the adjusting entry for depreciation...Ch. 3 - Record the adjusting entry for deferred revenue...Ch. 3 - Prob. 11BE Ch. 3 - Prob. 12BE Ch. 3 - Prob. 13BE Ch. 3 - BE3-14 For each of the following accounts,...Ch. 3 - Prob. 15BE Ch. 3 - Prob. 16BE Ch. 3 - Prob. 17BE Ch. 3 - Prob. 18BE Ch. 3 - Prob. 19BE Ch. 3 - BE3–20 The year-end adjusted trial balance of...Ch. 3 - E3–1 Consider the following...Ch. 3 - E3–2 Consider the following...Ch. 3 - E3–3 Refer to the situations discussed in...Ch. 3 - Differentiate cash-basis expenses from...Ch. 3 - E3-5 During the course of your examination of the...Ch. 3 - E3–6 Listed below are all the steps in the...Ch. 3 - Record adjusting entries (LO3-3) E3-7 Golden Eagle...Ch. 3 - E3-8 Consider the following transactions for...Ch. 3 - Calculate the effects on net income of not...Ch. 3 - E3-10 Consider the following situations for...Ch. 3 - Calculate the effects on the accounting equation...Ch. 3 - Prob. 12E Ch. 3 - Prob. 13E Ch. 3 - E3-14 The December 31, 2021, unadjusted trial...Ch. 3 - Prob. 15E Ch. 3 - E3-16 The December 31, 2021, adjusted trial...Ch. 3 - E3-17 Seminoles Corporation’s fiscal year-end is...Ch. 3 - 2. Calculate the ending balance of Retained...Ch. 3 - E3-19 Refer to the adjusted trial balance in...Ch. 3 - Prob. 20E Ch. 3 - Prob. 21E Ch. 3 - Prob. 1PA Ch. 3 - Convert cash-basis accounting to accrual-basis...Ch. 3 - Record adjusting entries (LO3-3) P3-3A The...Ch. 3 - Prob. 4PA Ch. 3 - Prob. 5PA Ch. 3 - P3–6A The year-end financial statements of...Ch. 3 - Prob. 7PA Ch. 3 - Prob. 8PA Ch. 3 - Prob. 9PA Ch. 3 - Prob. 1PB Ch. 3 - Prob. 2PB Ch. 3 - P3-3B The information necessary for preparing the...Ch. 3 - P3-4B Grasshopper Lawn Service provides general...Ch. 3 - P3-5B Orange Designs provides consulting services...Ch. 3 - Prob. 6PB Ch. 3 - Prob. 7PB Ch. 3 - Prob. 8PB Ch. 3 - Prob. 9PB Ch. 3 - Prob. 1AP Ch. 3 - American Eagle Outfitters, Inc. AP3-2 Financial...Ch. 3 - The Buckle, Inc. AP3-3 Financial information for...Ch. 3 - Prob. 4AP Ch. 3 - AP3-5 You have recently been hired as the...Ch. 3 - Prob. 7AP

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