Prepare any necessary entries at December 31, 2016, for Piper Company in preparation for year-end financial statements

Question:

Prepare any necessary entries at December 31, 2016, for Piper Company in preparation for year-end financial statements for each of the following separate transactions and events.

1. Piper Company records a year-end entry for $10,000 of previously unrecorded cash sales (costing $5,000) and its sales taxes at a rate of 4%.

2. The company earned $50,000 of $125,000 previously received in advance and originally recorded as unearned services revenue?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...