Homework: Week 3- Chapter 04 exercises Save Score: 0 of 1 pt 3 of 8 (0 complete)

Question

Homework: Week 3- Chapter 04 exercises Save Score: 0 of 1 pt 3 of 8 (0 complete)Y HW Score: 0%, 0 of 8 p S4A-14 (similar to) Question Help Lake View Associates accrued $5,500 of Service Revenue at December 31. Lake View Associates received $15,500 on January 15 including the accrued revenue recorded on December 31 Read the requirements. Requirement 1. Record the adjusting journal entry to accrue Service Revenue. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Dec. 31

Explanation / Answer

The effect of the second and third entries is that , service revenue is credited with the amount of revenue relating to the second year.

1. Entry to record adjusting entry to accrue service revenue Date Account Title Debit Credit Dec.31, Year 1 Accounts Receivable 5000 Service Revenue 5000 2. Entry to reverse the adjusting entry Date Account Title Debit Credit Jan.1, Year 2 Service Revenue 5000 Accounts Receivable 5000 3. Entry to record the cash receipt Date Account Title Debit Credit Jan.15, Year 2 Cash 15000 Service Revenue 15000

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