X Company prepares monthly financial statements. On January 1, a customers paid
ID: 2483101 • Letter: X
Question
X Company prepares monthly financial statements. On January 1, a customers paid X company $38,400 in advance for cleaning services to be performed during the following three months, once in January, once in February, and once in March. What will be the result of the January 31 adjusting entry on X Company's financial statement? A $12,800 decrease in the Retained Earnings account on the Balance Sheet revenue of $12,800 reported on the Income Statement a $12,800 decrease in the Cash account on the Balance Sheet a $12,800 increase in the Cash account on the Balance Sheet a Si2,800 increase in the Deferred Revenue account on the Balance Sheet a balance of $12,800 in the Deferred Revenue account on the Balance Sheet X Company prepares annual financial statements. On January 1, 2012. it purchased a machine for $76,000. Its estimated useful life was 4 years and its estimated disposal value in 4 years was $10,000. Using straight-line depreciation, what is the adjusting entry on December 31, 2015? Equipment and Paid-In Capital both decrease by $19,000 Equipment and Retained Earnings both decrease by $49,500 Equipment and Paid-In Capital both decrease by $16,500 DO Equipment and Retained Earnings both increase by $49,500 Equipment and Retained Earnings both decrease by $16,500 Equipment and Retained Earnings both decrease by $19,000Explanation / Answer
Answer 8. Journal Entry Date Particulars Dr. Amt. Cr. Amt Jan-01 Prepaid Cleaning Expenses Dr. 38400 To Cash 38400 (Record the Cleaning Expenses Paid for 3 Months) Jan-31 Cleaning Exp. Dr. 12800 To Prepaid Cleaning Expenses 12800 (Record the adjusting entry for Cleaning expenses for the M/o Jan) Cleaning expenses of $12800 Shown as Expense in the Income Satement for the period ended Jan-31 Prepaid Cleaning Expense will be Shown in Asset Side of Balance Sheet under the Head Current Assets As per Chegg Guidelines, You can ask only one question at a time having four subparts. For other parts or Questions please ask it again.
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