Question
Beale Building Services offers janitorial services on both a contract basis and an hourly basis. On January 1, Beale collected $45,000 in advance on a
Beale Building Services offers janitorial services on both a contract basis and an hourly basis. On January 1, Beale collected $45,000 in advance on a sixmonth contract for work to be performed evenly during the next six months. Using the Transaction Analysis Template, determine the financial statement effect of each of the following: a. The receipt on January 1 of $45,000 for contract work. b. The adjustment to be made on January 31, for the contract work done during January. c. At January 31, a total of 45 hours of hourly rate janitor work was unbilled. The billing rate is $25 per hour. Provide the accrual entries needed on January 31. (Note: The firm uses the account Fees
Balance SheetIncome StatementTransactionAssets=Liabilities+Stockholders' EquityRevenues-Expenses=Net Incomea. Jan. 1 receipt for contract work.Answer
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b. Jan. 31 adjustment for contract work.Answer
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c. Jan. 31 adjustment for unbilled janitor work.Answer
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Accounting And Financial Analysis In The Hospitality Industry
Authors: Jonathan A. Hales
1st Edition
0750678968, 978-0750678964
