Revenue Adjustments

Sentry Transport Inc. of Atlanta provides in-town parcel delivery services in addition to a full range of passenger services. Sentry engaged in the following activities during the current year:

Required:

1. Prepare adjusting entries at December 31 for these four activities. If no entry is required, type "No entry required" and leave the amount boxes blank.

Sentry received $5,000 cash in advance from Rich's Department Store for an estimated 250 deliveries during December 2013 and January and February of 2014. The entire amount was recorded as unearned revenue when received. During December 2013, 110 deliveries were made for Rich's.

Dec. 31

Correct 2 of Item 1

Correct 3 of Item 1

Correct 4 of Item 1

Correct 5 of Item 1

(Record earned revenue)

b. Sentry operates several small buses that take commuters from suburban communities to the central downtown area of Atlanta. The commuters purchase, in advance, tickets for 50 one-way rides. Each 50-ride ticket costs $500. At the time of purchase, Sentry credits the cash received to unearned revenue. At year end, Sentry estimates that revenue from 10,160 one-way rides has been earned.

Dec. 31

Correct 2 of Item 2

Correct 3 of Item 2

Correct 4 of Item 2

Correct 5 of Item 2

(Record earned revenue)

c. Sentry operates several buses that provide transportation for the clients of a social service agency in Atlanta. Sentry bills the agency quarterly at the end of January, April, July, and October for the service performed that quarter. The contract price is $7,500 per quarter. Sentry follows the practice of recognizing revenue from this contract in the period in which the service is performed.

Dec. 31	Correct 2 of Item 3	Correct 3 of Item 3
	Correct 4 of Item 3		Correct 5 of Item 3
	(Record earned revenue)