Gonzales Sales and Service completed the following transactions during 2020: Required 1. Journalize these entries by debiting
Question:
Gonzales Sales and Service completed the following transactions during 2020:
Required 1. Journalize these entries by debiting an asset account for Prepaid Rent and by crediting a liability account for Unearned Service Revenue. Explanations are not required.
2. Journalize the related adjustments at December 31, 2020. Explanations are not required.
3. Post the entries to T-accounts and show their balances at December 31, 2020. Posting references are not required.
4. Repeat Requirements 1 through 3. This time debit Rent Expense for the rent payment and credit Service Revenue for the collection of revenue in advance.
5. Compare the account balances in Requirements 3 and 4. They should be equal.
Step by Step Answer:
Horngrens Accounting Volume 1
ISBN: 9780135359709
11th Canadian Edition
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol Meissner, JoAnn Johnston, Peter Norwood