Ron_W2DQ1 - $300 neither revenue nor expense 4 Accounts...

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Ron_W2DQ1 E3-15 a. b. The business would earn the revenue when both parties are done. By perfroming the services for the freshman and sophomore class is the only way this will be consider a revenue. The only time you can have a revenue is when you have earned the money. The new account would be a liability called unearned revenue. This is when a businesses collect cash from it's customers before earning it. Only after doing the freshman's class party will it become a earned revenue.
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Ron_W2DQ1 E3-19 Journal Accounts and Explanations Debit Credit a. Unearned Rent Revenue ($4,000 3/12) 1,000 Rent Expense 1,000
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Ron_W2DQ1 P3-31A Amount of Revenue (Expense) for January Date: Revenue (Expense) Jan. 1 Prepaid Insurance
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Unformatted text preview: $300 neither revenue nor expense 4 Accounts Receivable $2,200 Revenue 5 Office Equipment $1,900 neither revenue nor expense 8 Property Tax Expense ($450) Expense 11 Cash Expense for Office Equipment $800 neither revenue nor expense 19 Golf Income $700 Revenue 24 Accounts Payable $400 neither revenue nor expense 26 Accounts Payable $1,900 neither revenue nor expense 29 Salary Expense ($900) Expense 31 Prepaid Insurance ($300 x 1/3) ($100) Expense 31 Golf Income $600 Revenue Req. 2 Net income $2,050.00 Req. 3 Accrual-Basis Amount of Revenue (Expense Accrual accounting records the effect of each transaction as it occurs. Cash basis record all cash receipts as a revenue....
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This note was uploaded on 01/05/2011 for the course ACC 205 taught by Professor Robertcarr during the Winter '10 term at Ashford University.

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Ron_W2DQ1 - $300 neither revenue nor expense 4 Accounts...

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