Stone Works is a paving stone installation business that operates from about April to October each year. The company has an outstanding reputation for the quality of its work and as a result pre-books customers a full year in advance. Customers must pay 40% at the time of booking and the balance on the completion date of the job. Stone Works records the 40% cash advance received from customers in the Unearned Revenues account. The December 31, 2023, balance sheet shows Unearned Revenues totalling $219,000. During 2024, $329,000 of cash was collected in total from customers: $231,000 regarding work completed during the year for customers who paid 40% down in 2023, and the balance representing the 40% prepayments for work to be done in 2025. Required: 1. Prepare the entry to record the collection of cash in 2024. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar amount.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Stone Works is a paving stone installation business that operates from about April to October each year. The company has an
outstanding reputation for the quality of its work and as a result pre-books customers a full year in advance. Customers must pay 40%
at the time of booking and the balance on the completion date of the job. Stone Works records the 40% cash advance received from
customers in the Unearned Revenues account. The December 31, 2023, balance sheet shows Unearned Revenues totalling $219,000.
During 2024, $329,000 of cash was collected in total from customers: $231,000 regarding work completed during the year for
customers who paid 40% down in 2023, and the balance representing the 40% prepayments for work to be done in 2025.
Required:
1. Prepare the entry to record the collection of cash in 2024. (Do not round intermediate calculations. Round the final answers to the
nearest whole dollar amount.)
Transcribed Image Text:Stone Works is a paving stone installation business that operates from about April to October each year. The company has an outstanding reputation for the quality of its work and as a result pre-books customers a full year in advance. Customers must pay 40% at the time of booking and the balance on the completion date of the job. Stone Works records the 40% cash advance received from customers in the Unearned Revenues account. The December 31, 2023, balance sheet shows Unearned Revenues totalling $219,000. During 2024, $329,000 of cash was collected in total from customers: $231,000 regarding work completed during the year for customers who paid 40% down in 2023, and the balance representing the 40% prepayments for work to be done in 2025. Required: 1. Prepare the entry to record the collection of cash in 2024. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar amount.)
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Revenue Recognition
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education