On September 1, Peterson Maintenance Company contracted to provide monthly maintenance services for the next eight months at a rate of $2,600 per month. The client paid Peterson $20,800 on September 1
Assuming Peterson records deferred revenues using the alternative treatment, what would be the entry on September 1?
A) Debit Cash and credit Unearned Revenue for $20,800
B) No entry is needed until the services are performed
C) Debit Cash and credit Service Revenue for $20,800
D) Debit Prepaid Maintenance and credit Cash for $20,800
C
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When Gina's company printed the ad for their Perfume in the newspapers, the caption read, "WAS $100, NOW $75". What kind of a promotional pricing did her company use?
What will be an ideal response?
Which of the following should be reported as a change in accounting estimate?
a. Change in the reported beginning inventory amount due to a discovery of a bookkeeping error b. Change from the completed-contract method to the percentage-of- completion method for revenue recognition on long-term construction contracts c. Increase in the rate applied to net credit sales from 1 percent to 1-1/2 percent in determining losses from uncollectible receivables d. Change made to comply with a new FASB pronouncement
Answer the following statements true (T) or false (F)
Comprehensive income is the change in equity of an entity during a period of transactions and other events and circumstances, from owner and non-owner sources.
Critical thinking is inactive because it discourages people from forming judgments about the quality of the link between someone's reasons and conclusions
Indicate whether the statement is true or false