3-10 - fee for this project had been received in advance...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Page 10 of 14 http://ezto.mhhm.mcgraw-hill.com/hm_accounting.tpx?todo=printview Date General Journal Debit Credit Dec. 2 Insurance Expense 1,540 Cash 1,540 c. On December 15, the company receives an advance payment of $13,000 cash from a customer for remodeling work. Date General Journal Debit Credit Dec. 15 Cash 13,000 Remodeling Fees Earned 13,000 d. On December 28, the company receives $3,700 cash from another customer for remodeling work to be performed in January. Date General Journal Debit Credit Dec. 28 Cash 3,700 Remodeling Fees Earned 3,700 e. A physical count on December 31 indicates that Lowes has $1,840 of supplies available. Date General Journal Debit Credit Dec. 31 Supplies 1,840 Supplies Expense 1,840 f. An analysis of the insurance policies in effect on December 31 shows that $340 of insurance coverage had expired. Date General Journal Debit Credit Dec. 31 Prepaid Insurance 1,200 Insurance Expense 1,200 g. As of December 31, only one remodeling project has been worked on and completed. The $5,570
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: fee for this project had been received in advance. Date General Journal Debit Credit Dec. 31 Remodeling Fees Earned 11,130 Unearned Remodeling Fees 11,130 Worksheet Learning Objective: 03-P4 Lowes Construction began operations on December 1. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance. Prepare journal entries for items a through d and the adjusting entries as of its December 31 period-end for items e through g. (Omit the "$" sign in your response.) a. Supplies are purchased on December 1 for $2,000 cash. Date General Journal Debit Credit Dec. 1 Supplies Expense 2,000 Cash 2,000 b. The company prepaid its insurance premiums for $1,540 cash on December 2. Date General Journal Debit Credit Dec. 2 Insurance Expense 1,540 Cash 1,540...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online