On November 1, clients of Carolina Panther Company prepaid $4,250 for services t

Question

On November 1, clients of Carolina Panther Company prepaid $4,250 for services to be provided in the future at a rate of $85 per hour.

(a) Journalize the receipt of cash.

(b) As of November 30, Carolina Panther Co. shows that 15 hours of services have been provided on this agreement. Prepare the necessary journal entry.

(c) Determine the total unearned fees in hoursanddollarsat November 30. No entry necessary. Please put answer on this line: __________________________

Date

Account Titles

Debits

Credits

Date

Account Titles

Debits

Credits

Explanation / Answer

1-Nov Cash 4250      Unearned service revenue 4250 30-Nov Unearned service revenue 1275 =15*85       Service revenue 1275 Total unearned fees in dollars at November 30 = 4250-1275 = $2975 Total unearned fees in hours at November 30 =(4250/85)-15= 35 hours

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