Answered step by step
Verified Expert Solution
Question
1 Approved Answer
At the beginning of 2019, Pixel Film Corp. had a balance of $23,000 in its Deferred Demolition Revenue account. During 2019, Pixel Film Corp.
At the beginning of 2019, Pixel Film Corp. had a balance of $23,000 in its Deferred Demolition Revenue account. During 2019, Pixel Film Corp. received additional cash prepayments totaling $156,800 by customers for demolition jobs to be completed later. The cash prepayments were correctly accounted for with an increase in Deferred Demolition Revenue. As of the company's year end of December 31, 2019, Pixel had completed $143,500 of the prepaid contracts. Which of the following is the journal entry Pixel recorded on December 31, 2019? Dr Demolition Revenue 36,300 Cr Deferred Demolition Revenue 36,300 Dr Deferred Demolition Revenue 36,300 Cr Demolition Revenue 36,300 Dr Demolition Revenue 23,000 Dr Cash 120,500 Cr Deferred Demolition Revenue 143,500 Dr Deferred Demolition Revenue 143,500 Cr Accounts Receivable 23,000 Cr Demolition Revenue 120,500 Dr Deferred Demolition Revenue 143,500 Cr Demolition Revenue 143,500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started