Please help me do a general journal for this scenario: Master Flow hired Ring Social Media Company to build Master Flow’s Web Site for $3,000 and paid a $1,000 initial payment up front and opened a $2,000 trade account with Ring. Final payment will be due upon completion of the Web Site.
Please help me do a general journal for this scenario: Master Flow hired Ring Social Media Company to build Master Flow’s Web Site for $3,000 and paid a $1,000 initial payment up front and opened a $2,000 trade account with Ring. Final payment will be due upon completion of the Web Site.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me do a general journal for this scenario:
Master Flow hired Ring Social Media Company to build Master Flow’s Web Site for
$3,000 and paid a $1,000 initial payment up front and opened a $2,000 trade account
with Ring. Final payment will be due upon completion of the Web Site.
Expert Solution
Step 1 Introduction
In case liability arises but it will be paid in future then it is recorded as current liability in balance sheet.
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