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SET A

Case 1: On September 30, 2011, Ator Nee, a lawyer, was engaged by a client to render legal services from October 2011 to January 2012. The professional fee amounting to 80,000 will be paid by the client on January 2012. (2 points per item) 1. Prepare the journal entry on December 31, 2011. 2. How much is the total revenue to be recognized by Hotel Supreme from the transaction above? 3. How much is the Professional Fee to be recognized on December 31, 2011? 4. How much is the Accrued Professional Fee to be recognized on December 31, 2011? 5. How much is the Professional Fee to be recognized on January 2012? Case 2: On September 1, 2011, Flavio, a blacksmith, received 20,000 from Lizardo. The payment was for Flavio to forge 5 swords. As of December 31, 2011, Flavio was able to forge 3 swords. (2 points per item) 1. Prepare the journal entry made by Flavio on September 1, 2011 if the liability method was used in recording the precollection of income. 2. Prepare the journal entry made by Flavio Hotel on September 1, 2011 if the revenue method was used in recording the precollection of income. 3. Prepare the adjusting entry on December 31, 2011 if: a. The liability method was used b. The revenue method was used 4. How much is the correct Service Revenue to be recognized for 2011? 5. How much is the Unearned Service Revenue to be recognized for 2011?

2011. How much is the total revenue to be recognized by Hotel Supreme from the transaction above? 3. Flavio. (2 points per item) 1. The liability method was used b. As of December 31. 2011. Prepare the journal entry on December 31. 2011. The revenue method was used .000 will be paid by the client on January 2012. Prepare the journal entry made by Flavio on September 1. How much is the Professional Fee to be recognized on December 31.000 from Lizardo. Prepare the journal entry made by Flavio on September 1. How much is the Professional Fee to be recognized on January 2012? Case 2: On September 1. received 20. Flavio was able to forge 3 swords. Ator Nee. a blacksmith. Prepare the adjusting entry on December 31. 2011 if the liability method was used in recording the precollection of income. 2. 2011 if: a. a lawyer. 2011? 4. The professional fee amounting to 80. 3. 2011 if the revenue method was used in recording the precollection of income.SET B Case 1: On September 30. 2011? 5. How much is the Accrued Professional Fee to be recognized on December 31. (2 points per item) 1. 2. 2011. The payment was for Flavio to forge 4 swords. was engaged by a client to render legal services from November 2011 to January 2012.

How much is the correct Service Revenue to be recognized for 2011? 5.4. How much is the Unearned Service Revenue to be recognized for 2011? .