Question
On the last day of December 2013, Smith & Sons entered into a transaction that resulted in a receipt of $54,000 cash in advance related
On the last day of December 2013, Smith & Sons entered into a transaction that resulted in a receipt of $54,000 cash in advance related to services that will be provided during January 2014. During December of 2013, the company also performed $32,000 of services which were neither billed nor paid. Prior to December adjustments and before these two transactions were recorded, the company's trial balance showed service revenue of $800,000 at December 31, 2013. There are no other prepaid services yet to be delivered. If Smith & Sons makes the appropriate adjusting entry, how much will service revenue will be reflected on the December 31, 2013 income statement? Select one: A. $725,500 B. $757,500 C. $832,000 D. $811,500 Previous page
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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