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Tuesday, November 16, 2010

Valix Finacc vol 2 Problem 1-39

Financial Accounting Volume 2 2008 Valix-Peralta
Chapter 1 Problem 1-39


1.  Cash                                                                                                980,000
            Unearned service contract revenue                                                        980,000

     Service contract expense                                                          520,000
            Cash                                                                                                                  520,000

     Unearned service contract revenue                                                  860,000
            Service contract revenue                                                                            860,000            
2.  Unearned revenue – January 1                                                                         600,000
     Cash receipts from contracts sold                                                                    980,000
     Total                                                                                                                       1,580,000
     Less: Service revenue recognized                                                                     860,000
     Unearned revenue – December 31                                                                  720,000


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