For each of the following transactions of the Marlin Corporation determine if an adjusting entry is now
Question:
For each of the following transactions of the Marlin Corporation determine if an adjusting entry is now needed. If an adjustment is required, provide that entry. Assume each journal entry was made properly.
A.)At the beginning of the month, Marlin agreed to perform services for the subsequent three months for Catsui Corporation for $30,000 per month. Catsui paid Marlin all $90,000 in advance. One month has now passed. Each month is viewed as an independent job.
B.)Marlin pays its employees every two weeks. At the end of the month, Marlin owes its employees $480,000, but will not pay them until the following week.
C.)Marlin paid $300,000 for rent at the beginning of the month by debiting prepaid rent and crediting cash. The $300,000 covered six months of occupancy, but only one month has passed.
D.)At the beginning of the month, Marlin agreed to perform services for Ryland Company for $16,000 per month for the next six months. Ryland has not yet paid any cash to Marlin, and no part of the work is yet viewed as being substantially complete.