Recording prepaid expenses and unearned revenues Al-Hoda Co. had the following transactions in the last two months of its fiscal year ended May 31. RECORDING ENTRIES Apr. 1 Paid $2,450 cash to an accounting firm for future consulting services. 1 Paid $3,600 cash for 12 months of insurance through March 31 of the next year. 30 Received $8,500 cash for future services to be provided to a customer. May 1 Paid $4,450 cash for future newspaper advertising. 23 Received $10,450 cash for future services to be provided to a customer. ADJUSTING ENTRIES: 31 Of the consulting services paid for on April 1, $2,000 worth has been received. 31 A portion of the insurance paid for on April 1 has expired. No adjustment was made in April to Prepaid Insurance. 31 Services worth $4,600 are not yet provided to the customer who paid on April 30. 31 Of the advertising paid for on May 1, $2,050 worth is not yet used. 31 The company has performed $5,500 of services that the customer paid for on May 23. Required: - Also prepare adjusting entries at the end of the year.
Recording prepaid expenses and unearned revenues
Al-Hoda Co. had the following transactions in the last two months of its fiscal year ended May 31.
RECORDING ENTRIES
|
Apr. |
1 |
Paid $2,450 cash to an accounting firm for future consulting services. |
|
|
1 |
Paid $3,600 cash for 12 months of insurance through March 31 of the next year. |
|
|
30 |
Received $8,500 cash for future services to be provided to a customer. |
|
May |
1 |
Paid $4,450 cash for future newspaper advertising. |
|
|
23 |
Received $10,450 cash for future services to be provided to a customer. |
|
|
31 |
Of the consulting services paid for on April 1, $2,000 worth has been received. |
|
|
31 |
A portion of the insurance paid for on April 1 has expired. No adjustment was made in April to Prepaid Insurance. |
|
|
31 |
Services worth $4,600 are not yet provided to the customer who paid on April 30. |
|
|
31 |
Of the advertising paid for on May 1, $2,050 worth is not yet used. |
|
|
31 |
The company has performed $5,500 of services that the customer paid for on May 23. |
Required: -
- Also prepare adjusting entries at the end of the year.
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