Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
i need help with this Problem 10-6A Unearned revenues LO2 CHECK FIGURE: 2. $273,000 White Water Adventure is a travel adventure business that operates from
i need help with this Problem 10-6A Unearned revenues LO2 CHECK FIGURE: 2. $273,000 White Water Adventure is a travel adventure business that operates from about April to October each year. The company has an outstanding reputation for the quality of its tours and as a result pre-books customers a full year in advance. Customers must pay 40% at the time of booking and the balance on the completion date of the job. White Water records the 40% cash advance received from customers in the Unearned Revenues ac- count. The December 31, 2020, balance sheet shows Unearned Revenues totalling $329,000. During 2021, $384,000 of cash was collected in total from customers: $264,000 regarding completed tours during the year for customers who paid 40% down in 2020, and the balance representing the 40% prepayments for work to be done in 2022. Required 1. Prepare the entry to record the collection of cash in 2021. 2. Determine the balance in Unearned Revenue at December 31, 2021. Analysis Component: What would the impact be on the financial statement at year-end each year if White Water did not record the unearned revenues? What ratio would be affected
i need help with this
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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