ROLD REVENUES-COMPREHENSIVE QUESTION: Boat Yard Inc AuC repairs, cleans, and sto
ID: 2341605 • Letter: R
Question
ROLD REVENUES-COMPREHENSIVE QUESTION: Boat Yard Inc AuC repairs, cleans, and stores boats for customers. They are preparing monthly financial statements for November 30, 2017 using accrual accounting. On November 30, the Boat Yard cleaned three boats but did not record the service fees of $33,300, paid $2,400 cash for a radio ad to air in January 2018, the inventory count showed usage of $ supplies, and wage expenses were $4,000. Instructions: A. What is the adjusting entry to accrued revenues earned? B. Prepare an Income Statement for Boat Yard Inc. for the month ended November 30 2017 18,900 in boat Boat Yard Inc. Income Statement For the month ending November 30, 2017Explanation / Answer
Answer
Date
Accounts title
Debit
Credit
30-Nov-17
Accounts receivables
$ 33,300.00
Fees Earned or Service Revenue
$ 33,300.00
(accrued revenue earned recorded, but not received)
Income Statement
For the month Ending November 30, 2017
Revenues:
Fees Earned or Service revenue
$ 33,300.00
Expenses:
Advertising expenses
[not recorded as expense for November, because its an expense for January 2018]
Supplies expenses
$ 18,900.00
Wages Expenses
$ 4,000.00
Total Expenses
$ 22,900.00
Net Income
$ 10,400.00
Date
Accounts title
Debit
Credit
30-Nov-17
Accounts receivables
$ 33,300.00
Fees Earned or Service Revenue
$ 33,300.00
(accrued revenue earned recorded, but not received)
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