Question 8 (11 points) Bravo Zulu is a CPA who performs $1,250 services for clie
ID: 2396462 • Letter: Q
Question
Question 8 (11 points) Bravo Zulu is a CPA who performs $1,250 services for clients in December, but does not bill those clients until January. Prepare the Adjusting General Journal entry (without explanation) if needed for December 31, 2016. If no entry is required then write "No Entry Required."
Question 9 (12 points) On Tuesday May 31, 2016 the Bravo Company had wages payable of $2,000. Friday, June 3, Bravo paid employee wages of $5,000 for the week (hint: 3,000 is wages expense). Prepare the compound general journal entry (without explanation) needed for June 3, 2016. If no entry is required then write "No Entry Required." Save GJ - 9
Explanation / Answer
Answers
Unbilled Clients will be billed as revenue earned on accounts
Date
Accounts Title
Debit
Credit
31-Dec-16
Accounts receivables
$ 1,250.00
Service Revenue
$ 1,250.00
(unbilled services now billed through adjusting entry)
June’s wages expense will be $3000 [5000 – 2000 for May]
Date
Accounts Title
Debit
Credit
03-Jun-16
Wages expense
$ 3,000.00
Wages Payable
$ 2,000.00
Cash
$ 5,000.00
(cash paid for wages includes $2000 for May as 'payable', rest $3000 is June expense)
Date
Accounts Title
Debit
Credit
31-Dec-16
Accounts receivables
$ 1,250.00
Service Revenue
$ 1,250.00
(unbilled services now billed through adjusting entry)
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