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  • BT Spa Had The Following Transactions During The Year Its

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    hassan taimour
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    BT Spa had several financial transactions before and after its June 30th fiscal year end. These included gift certificates sold resulting in deferred revenue, prepaid rent creating a deferred expense, equipment purchase requiring depreciation expense allocation over 8 years, accrued salary expense for the last week of June, and a service performed but not invoiced until after year end creating accrued revenue. Adjusting entries were needed to properly recognize these amounts in the appropriate accounting period.

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    Bt Spa Had the Following Transactions During the Year Its

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    BT Spa had several financial transactions before and after its June 30th fiscal year end. These included gift certificates sold resulting in deferred revenue, prepaid rent creating a deferred expense, equipment purchase requiring depreciation expense allocation over 8 years, accrued salary expense for the last week of June, and a service performed but not invoiced until after year end creating accrued revenue. Adjusting entries were needed to properly recognize these amounts in the appropriate accounting period.

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    26 views1 page

    BT Spa Had The Following Transactions During The Year Its

    Uploaded by

    hassan taimour
    BT Spa had several financial transactions before and after its June 30th fiscal year end. These included gift certificates sold resulting in deferred revenue, prepaid rent creating a deferred expense, equipment purchase requiring depreciation expense allocation over 8 years, accrued salary expense for the last week of June, and a service performed but not invoiced until after year end creating accrued revenue. Adjusting entries were needed to properly recognize these amounts in the appropriate accounting period.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    BT Spa had the following transactions during the year Its

    #547
    BT Spa had the following transactions during the year. Its year-end is on June 30. a. The
    Unearned Revenue account showed a balance of $800, which represented four gift certificates
    of $200 each sold in June. Three gift certificates had been redeemed in June.b. The Prepaid
    Rent account showed a balance of $6,000, which represented six months’ rent paid on April
    1.c. An exercise machine was purchased on March 1 for $7,500. BT estimated that the machine
    could last 8 years, with a salvage value of $300 at the end of the 8th year.d. Five employees
    each earned $100/day. Salary for the last seven days of June would be paid on July 2nd.e. A
    fitness service was performed for a business client on June 30 for $350.The invoice was sent on
    July 5th, after the year-end date.Requirements1. Identify each of the above transactions as
    accrued revenue, accrued expense, deferred revenue, or deferred expense.2. Record the
    adjusting entry for each transaction.View Solution:
    BT Spa had the following transactions during the year Its

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