Question
Stone Works is a paving stone installation business that operates from about April to October each year. The company has an outstanding reputation for the
Stone Works is a paving stone installation business that operates from about April to October each year. The company has an outstanding reputation for the quality of its work and as a result pre-books customers a fullyear in advance. Customers must pay 40% at the time of booking and the balance on the completion date of the job . Stone Works records the 40% cash advance received from customers in the Unearned Revenues account . The December 31,2020 balance sheet shows Unearned Revenues totalling $ . During 2021, $ 284,000 of cash was collected in total from customers : $ 205,000 regarding work completed duringthe year for customers who paid 40 % down in 2020 , and the balance representing the 40% prepayments for work to be done in 2022.
Required : 1. Prepare the entry to record the collection of cashin 2021 ctions involving current liabilities during 2020 and 2021
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