On january 1 unearned revenue of maywood inc had a

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Financial and Managerial Accounting Using Excel for Success
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Chapter 4 / Exercise PE 4–2A
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
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16) On January 1, Unearned Revenue of Maywood Inc. had a beginning balance of $2,000. During January, the company earned $1,000 of the unearned revenue. The company also collected $6,000 from a new customer for services to be rendered the following month. At the end of January, the Unearned Revenue account had a balance of $6,000. Diff: 1
LO: 3-3 AACSB: Application AICPA Functional: Measurement 11
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Financial and Managerial Accounting Using Excel for Success
The document you are viewing contains questions related to this textbook.
Chapter 4 / Exercise PE 4–2A
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
17) Elsdon Inc. borrowed $21,000 on a one-year Note Payable with an interest rate of 10% per year on June 1. It will repay the principal and interest at the end of the one-year period. The company makes accrual adjustments at the end of each month. The company should record interest expense of $2,100 on June 30. Diff: 1
LO: 3-3 AACSB: Application AICPA Functional: Measurement 18) Laramie Inc. signed a contract with a service provider for security services at a rate of $250 per month for the period of January through June. Laramie Inc. will pay the service provider the entire amount at the end of June. The company makes adjusting entries each month. During the month of June, it should record total security expense of $500. Diff: 1
LO: 3-3 AACSB: Application AICPA Functional: Measurement 19) Argyle Designs Inc. has entered into a contract to design 20 new dresses for a customer. It will collect a total of $40,000 after the design services are complete. Argyle started design work on June 1. As of June 30, it finished 4 of the 20 designs. The company will make an adjusting entry at the end of June to accrue $10,000 of service revenue.
Diff: 1 LO: 3-3 AACSB: Application AICPA Functional: Measurement 20) Unearned Revenue is classified as a(n) ________ account. A) liability B) asset C) revenue D) equity Answer: A Diff: 1
LO: 3-3 AACSB: Concept AICPA Functional: Measurement 12
21) Kostner Financial Services Inc. performed accounting services for a client in December. A bill was mailed to the client on December 30. The company received the client's check by mail on January 5. Which of the following accounts should appear on the income statement for the year ended December 31 as per the revenue recognition principle? A
Diff: 1 LO: 3-3 AACSB: Application AICPA Functional: Measurement

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