entry. If any 6j In the second week of December, Kind Matters agreed to provide
ID: 2411012 • Letter: E
Question
entry. If any 6j In the second week of December, Kind Matters agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $4340. The terms of the Inital agreement call for Kind Matters to provide services from December 12, 2017 through January 10. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry. if any Genera Journal General Ledger Income Triai Balance atatementEquity Belance Sheet Impact on For transactions 1-6, review the unadjusted balance from the Triai Balance and prepare the adjusting entry necessary toExplanation / Answer
Answers
Service start date
12-Dec-17
Service completion date
10-Jan-18
No. of days for service provided
30 days
Year ending on
31-Dec-17
No. of days service provided in 2017
20 days [from 12 Dec to 31 Dec]
No. of days service provided in 2018
10 days (30 – 20)
Total Revenue for 30 days
$ 4,140.00
Revenue earned for 20 days in 2017
$ 2,760.00 [4140 x 20 days/30 days]
Revenue to be earned in 2018
$ 1,380.00 [ 4140 x 10 days/30 days]
Date
Accounts title
Debit
Credit
31-Dec-17
Accounts receivables
$ 2,760.00
Service Revenue
$ 2,760.00
(revenue earned for 20 days recorded)
Service start date
12-Dec-17
Service completion date
10-Jan-18
No. of days for service provided
30 days
Year ending on
31-Dec-17
No. of days service provided in 2017
20 days [from 12 Dec to 31 Dec]
No. of days service provided in 2018
10 days (30 – 20)
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