appetuide
Joined: 29 Dec 2007
Posts: 18
Location: Mali
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 Posted: Mon Apr 28, 2008 1:20 pm Post subject: The journal entry to adjust the balance in Unearned Revenue |
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| Smith Photography account balances at 31, 20x7, before recording adjusting entries:Cash $26,667 debitPrepaid Insurance $450 debitFilm on Hand $250 debitCameras $20,000 debitAccumulated Depreciation - Cameras $3,667 creditAccounts Payable $7,000 creditUnearned Revenue $5,700 creditNote Payable $3,000 creditCapital stock $1,000 creditRetained Earnings $5,800 creditDividends $1,200 debitRevenue $28,000 creditUtilities Expense $3,200 debitSalaries Expense $2,400 debitOther information:Film on Hand on 31,20x7, was $180.The cameras were purchased on 1,20x7. The estimated life is 5 years.The balance in unearned revenue is $2,000.Interest owed by not paid on the note was $30.Salaries owed but not paid at 12/31 were $2,000A.$20,000 debit,Unearned Revenue;$2,000 credit, RevenueB.$20,000 debit,Revenue;$2,000 credit, Unearned RevenueC.$3,700 debit,Unearned Revenue;$31,700 credit, RevenueD.$3,700 debit,Revenue;$3,700 credit, Unearned Revenue Equipment |
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danashelchan2305
Joined: 27 Dec 2007
Posts: 9
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| Posted: Tue Apr 29, 2008 1:20 am Post subject: The journal entry to adjust the balance in Unearned Revenue |
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| Unadjusted balance in unearned revenue is $5,700Adjustment ($3,700)Adjusted balance $2,000Dr Unearned revenue $3,700Cr Revenue $3,700Answer C |
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