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Learning Objective 3.3 LO 3.3) Prob.1. When Beerbo is not using its facilities to brew and ferment beer, it offers other craft breweries wwwwww
Learning Objective 3.3 LO 3.3) Prob.1. When Beerbo is not using its facilities to brew and ferment beer, it offers other craft breweries wwwwww to use its facilities for a fee. Assume Mitter Lite contracts Beerbo for brewing services. Beerbo agrees to charge Mitter $10,000 upon completion. Beerbo requires a 10% deposit (i.e. up-front fee) paid in advance of Mitter's use of Beerbo's facilities. The following transactions take place over the months of January, February, March, and December: January: Beerbo collects $1,000 cash deposit from Mitter. February: Mitter completes its brew; Beerbo remits an invoice to Mitter for the remaining $9,000 owed for February brewing services rendered. March: Mitter receives the invoice from Beerbo and remits payment in-full for the $9,000 owed. December: Beerbo records $3,000 depreciation on its brewing equipment Assume Beerbo and Mitter use accrual-basis accounting and have the following accounts on their respective chart of accounts Beerbo Cash Mitter Cash Accounts Receivable Equipment Accumulated Depreciation - Equipment Unearned Revenue Service Revenue Depreciation Expense - Equipment Prepaid Brewing Service Accounts Payable Brewing Service Expense LO 3.3) Prob.1.b. What journal entries would Beerbo and Mitter record during February? (Leave blank if + nothing) Beerbo: DR. DR. CR. DR CR Mitter: DR. CR. CR. DR CR
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