Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On the last day of December 2016, Camrey's Trucks ered into a transaction that resulted in a receipt of $216,000 cash in advance related to

image text in transcribed
image text in transcribed
image text in transcribed
On the last day of December 2016, Camrey's Trucks ered into a transaction that resulted in a receipt of $216,000 cash in advance related to services that will be provided during January 2017. During December of 2016, the company also performed $128,000 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 $1,165,470 at December 31, 2016. There are no other prepaid services yet to be delivered, and during the month all outstanding accounts receivable from prior months were collected. If Camrey's Trucks makes the appropriate adjusting entry, how much will service revenue will be reflected on the December 31, 2016 income statement? O $1,165,470 $1,715,000 $1,623,000 O $1,293,470 On the last day of December 2016, Camrey's Trucks entered into a transaction that resulted in a receipt of $216,000 cash in advance related to services that will be provided during January 2017. During December of 2016, the company also performed $128,000 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 $1,165,470 at December 31, 2016. There are no other prepaid services yet to be delivered, and during the month all outstanding accounts receivable from prior months were collected. If Camrey's Trucks makes the appropriate adjusting entry, how much will be reported on the December 31, 2016 balance sheet as unearned revenue? $90,000 $216,000 $64,000 $98,000 On the last day of December 2016, Camrey's Trucks entered into a transaction that resulted in a receipt of $216,000 cash in advance related to services that will be provided during January 2017. During December of 2016, the company also performed $128,000 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 $1,165,470 at December 31, 2016. There are no other prepaid services yet to be delivered, and during the month all outstanding accounts receivable from prior months were collected. If Camrey's Trucks makes the appropriate adjusting entry, how much will be reported on the December 31, 2016 balance sheet as accounts receivable? $108,000 $256,000 $64,000 $128,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Human Resources

Authors: Kelli W. Vito

2nd Edition

0894136941, 978-0894136948

More Books

Students also viewed these Accounting questions