On May 25, Mt. Wildhorse Company received a $646 check from Douglas Fir for services to be performed in the future. The bookkeeper for Mt. Wildhorse Company incorrectly debited Cash for $646 and credited Accounts Receivable for $646. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should: O debit Accounts Receivable $646 and credit Unearned Service Revenue $646. O debit Accounts Receivable $646 and credit Cash $646. O debit Cash $646 and credit Unearned Service Revenue $646. O debit Accounts Receivable $646 and credit Service Revenue $646.

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…