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Chapter 3 Activity For this activity, assume adjusting entries are recorded at the end of each month. Accrued Revenue On August 1, Sun Devil LLC
Chapter 3 Activity For this activity, assume adjusting entries are recorded at the end of each month. Accrued Revenue On August 1, Sun Devil LLC is hired by a customer to provide proof reading services for $1,200 a month. Throughout the month of August, Sun Devil LLC performs the proof reading services for the client, however, the client does not pay for the services until the following month. 1. What is the appropriate adjusting journal entry that Sun Devil LLC will record on August 31 (month's end)? 2. What is the appropriate journal entry that Sun Devil LLC will record when the customer pays for the services in the following month? Accrued Expenses Sun Devil LLC has 2 employees that perform the proof reading services for its customers. During the month of September, these employees earned wages of $775 for their work. Sun Devil LLC will pay its employees on October 1 for the wages earned in September. 1. What is the appropriate adjusting journal entry that Sun Devil LLC will record on September 30? 2. What is the appropriate entry that Sun Devil LLC will record on October 1
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