Anderson Accounting Services LLC provides accounting and tax preparation and consulting services. Sometimes customers only wish to have financial statements and/or tax returns prepared. Sometimes customers bundle accounting and tax preparation with consulting services to be provided over a period of time. Sometimes customers only wish to have consulting services provided over a period of time. Because Anderson is a service firm there is no cost of goods sold associated with their services. Round all answers and do not worry about minor rounding differences. 1 Customer is Civic Corporation and they purchase one bundled package Date of contract 10/1/X7 Tax consulting begins 10/1/X7 Length of consulting services 12 months Tax return preparation occurs over the period January through April of 20X8 Length of tax preparation 4 months Price of tax preparation to be allocated over the return preparation period $ 8,000 stand alone price Price of consulting services to be allocated over consulting period 18,000 stand alone price Customers are charged a lesser amount as follows for both tax and consulting $ 24,800 Anderson Accounting Services LLC's current year end 12/31/X7 Customers pay at the contract date for BOTH the consulting services and the preparation services. 7.) The Deferred Sales Revenue account as what "normal or natural" balance? 8.) The following journal entry has what impact on the retained earnings? Input the amount. For an increase simply input the number. For a decrease input the number with a minus sign before it such as -500. If there is no impact input a zero (0). 500 Cash Deferred Service Revenue 500 Anderson Accounting Services LLC provides accounting and tax preparation and consulting services. Sometimes customers only wish to have financial statements and/or tax returns prepared. Sometimes customers bundle accounting and tax preparation with consulting services to be provided over a period of time. Sometimes customers only wish to have consulting services provided over a period of time. Because Anderson is a service firm there is no cost of goods sold associated with their services. Round all answers and do not worry about minor rounding differences. 1 Customer is Civic Corporation and they purchase one bundled package Date of contract 10/1/X7 Tax consulting begins 10/1/X7 Length of consulting services 12 months Tax return preparation occurs over the period January through April of 20X8 Length of tax preparation 4 months Price of tax preparation to be allocated over the return preparation period $ 8,000 stand alone price Price of consulting services to be allocated over consulting period 18,000 stand alone price Customers are charged a lesser amount as follows for both tax and consulting $ 24,800 Anderson Accounting Services LLC's current year end 12/31/X7 Customers pay at the contract date for BOTH the consulting services and the preparation services. 7.) The Deferred Sales Revenue account as what "normal or natural" balance? 8.) The following journal entry has what impact on the retained earnings? Input the amount. For an increase simply input the number. For a decrease input the number with a minus sign before it such as -500. If there is no impact input a zero (0). 500 Cash Deferred Service Revenue 500
