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  • Olney Cleaning Company Had The Following Items That Require Adjustment

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    Hassan Jan
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    Olney Cleaning Company received cash in advance for two cleaning contracts. For the first contract, $14,520 was received but $1,210 of services were still unearned at year end. For the second contract, $9,840 was received but $3,280 of services had been provided by year end, leaving $6,560 unearned. Adjusting entries are needed to recognize the unearned revenue and properly state the financials.

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    Olney Cleaning Company Had the Following Items That Require Adjustment

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    Olney Cleaning Company received cash in advance for two cleaning contracts. For the first contract, $14,520 was received but $1,210 of services were still unearned at year end. For the second contract, $9,840 was received but $3,280 of services had been provided by year end, leaving $6,560 unearned. Adjusting entries are needed to recognize the unearned revenue and properly state the financials.

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    © All Rights Reserved
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    41 views1 page

    Olney Cleaning Company Had The Following Items That Require Adjustment

    Uploaded by

    Hassan Jan
    Olney Cleaning Company received cash in advance for two cleaning contracts. For the first contract, $14,520 was received but $1,210 of services were still unearned at year end. For the second contract, $9,840 was received but $3,280 of services had been provided by year end, leaving $6,560 unearned. Adjusting entries are needed to recognize the unearned revenue and properly state the financials.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Olney Cleaning Company had the following items that

    require adjustment #2288


    Olney Cleaning Company had the following items that require adjustment

    Olney Cleaning Company had the following items that require adjustment at year end.

    a. For one cleaning contract, $14,520 cash was received in advance. The cash was credited to
    Unearned Service Revenue upon receipt. At year end, $1,210 of the service revenue was still
    unearned.

    b. For another cleaning contract, $9,840 cash was received in advance and credited to
    Unearned Service Revenue upon receipt. At year end, $3,280 of the services had been
    provided.

    Required:

    1. Prepare the adjusting journal entries needed at December 31.

    2. What is the effect on the financial statements if these adjusting entries are not made?

    3. What is the balance in Unearned Service Revenue at December 31 related to the two
    cleaning contracts?

    Olney Cleaning Company had the following items that require adjustment

    ANSWER
    http://paperinstant.com/downloads/olney-cleaning-company-had-the-following-items-that-require-
    adjustment/

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