A531-7UFS

A531-7UFS - Name: Umme Fatema Siddique Student Number: 805...

This preview shows pages 1–3. Sign up to view the full content.

Name: Umme Fatema Siddique Student Number: 805 936 291 Course Code/Number: ACCT 531 Assignment Number: 7 Accounting in Action: CM2 > Part I: Unearned Revenues Requirement (a): Amount of Unearned Revenue The amount of Unearned Revenue that CM2 should report in the balance sheet at the end of 2010 would be as follows: Service Contract 1: [(\$42,000/6 months) x 3 months] = \$21,000 Service Contract 2: [(\$75,000/12 months) x 10 months] = \$62,500 Service Contract 3: [(\$90,000/12 months) x 11 months] = \$82,500 Total Unearned Revenue for 2011 \$166,000 Requirement (b): Journal Entry 2010 Service Revenue (\$166,000 - \$105,000) \$61,000 Dec-31 Unearned Revenue \$61,000 Requirement (c): Memo explaining the effect of the Journal Entry: Memorandum DATE: 21 st June, 2011 TO: Conner and Martin, Management Team, CM2 Corporation FROM: Umme Fatema Siddique RE: Analysis of existing Unearned Revenue and proposed correction Thank you for allowing me the opportunity to work with your company. As requested, I have evaluated the actual Unearned Revenue account balance based your company existing financial reports and have analyzed the effect of the new calculation on the financial statements.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Based on my study, I have reached the following conclusions about unearned revenue: Service Contract 1: [(\$42,000/6 months) x 3 months] = \$21,000 Service Contract 2: [(\$75,000/12 months) x 10 months] = \$62,500 Service Contract 3: [(\$90,000/12 months) x 11 months] = \$82,500 Total Unearned Revenue for 2011 \$166,000 To adjust this amount with the projected amount of unearned revenue on the forecasted balance
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/01/2012 for the course ACCT 531 taught by Professor Janicecharko during the Winter '11 term at Humber.

Page1 / 4

A531-7UFS - Name: Umme Fatema Siddique Student Number: 805...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online