Question 11 Not yet answered Marked out of 1 P Flag question On April 1. 2017. P

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Question 11 Not yet answered Marked out of 1 P Flag question On April 1. 2017. Planet Services received $9200 in advance of performing the services from a customer for three months of service (Do not round any intermediate calculations, and round your final answer to the nearest dollar.) April, May and June. What would be the journal entry to adjust the accounts at the end of May? Select one O A Debit Service Revenue $3067, and credit Unearned Revenue $3067 OB. Debit Unearned Revenue $6133, and credit Service Revenue $6133 C. Debit Unearned Revenue $9200, and credit Service Revenue $9200 o D. Debit Service Revenue $6133, and credit Accounts Recevable $6133 E. None of the above Question 12 Danube Corp, purchased a used machine for $17.000. The machine required installation costs of $7.000 and insurance Not yet answered While in transit of $800. At which of the following amounts would the machine be recorded? Marked out of 1Select one P Flng question A $17,000 B $24,000 C. $17 600 D $24.600 E None of the above

Explanation / Answer

Answer 11:

Advance payment received for 3 months = 9200

Per month service rendered = 9200/3 = 3066.7

For 2 months (april and May) = 3066.7 * 2 = 6133

So, Debit unearned revenue by 6133 and credit service revenue by 6133.

Option B

Answer 12:

Cost of machine = 17000+7000+800

= 24800

None of the above

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