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On October 1, 2016, Lucia Landscaping collected $5,000 in advance from customers for landscaping service. The service revenue will be earned monthly over the five-month
On October 1, 2016, Lucia Landscaping collected $5,000 in advance from customers for landscaping service. The service revenue will be earned monthly over the five-month period ending Feb. 28, 2017. 1. Journalized the entry on October 1,2016 to record the collection of cash for future service. 2. Record the December 31, 2016 adjusting entry. \#2. On Sep 1, 2019 Lucia Landscaping obtained a bank loan of $10,000, interest rate of 10%, interest will be paid on August 31, 2020. Make the adjusting entry to record interest expense on Dec. 31, 2019. \#3. On Sep 21, 2020 Lucia Landscaping provided service to customer but won't get paid until Oct. 15. The fee owed by the customer is $600. As Lucia Landscaping needs to prepare monthly income statement and balance sheet at the end of Sep, please make the adjusting entry to record the accrued revenue on Sep. 21. Scenario 1 Sep. 21. AR Fee revenue Sep30 N/A Scenario 2 Sep. 21 N/A (did not record the transaction) Sep. 30 Adj, entry AR Fee revenue #4 On Dec. 1,2019 , Landscaping obtained a two-year loan of $12,000, interest rate of 24%, interest will be paid on Nov. 31, 2021. Make the adjusting entry to record interest expense on Dec. 31, 2019. \#5 On June 1, 2019, Landscaping provided service to customer but won't get paid until August 31. Make the journal entry to record accrued revenue on June 1
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