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Chapter 2 - Accrual Accounting Practice Problem - Revenue On May 1, 2017, ABC Company signed a contract to provide 1 year of marketing research
Chapter 2 - Accrual Accounting Practice Problem - Revenue On May 1, 2017, ABC Company signed a contract to provide 1 year of marketing research services to Anderson Company starting on May 1. Anderson Company paid the full year's price of $12,000 in cash on May 1. Prepare the entry that ABC Company should make on May 1" to record this event. 2. Record this event/entry in the Horizontal Financial Statement format below. Add any account titles/headings you need in the proper sections. Assets Liabilities Stockholders' Eq. Income Statement St. of Cash Flows 3. What amount of Service Revenue should ABC show on its 2017 Income Statement from this contract? 4. Prepare the adjusting entry that ABC should make on December 31, 2017 related to this contract. 5. Record ABC's adjusting entry in the Horizontal Financial Statement format below. Assets Liabilities Stockholders' Eq. Income Statement St. of Cash Flows e & Expense 4. Prepare the adjusting entry that ABC should make on December 31, 2017 related to this contract. 5. Record ABC's adjusting entry in the Horizontal Financial Statement format below. Assets Liabilities Stockholders' Eq. Income Statement St. of Cash Flows Chapter 2 - Accrual Accounting Practice Problem - Expense On May 1, 2017, ABC Company signed a contract to provide 1 year of marketing research services to Anderson Company starting on May 1. Anderson Company paid the full year's price of $12,000 in cash on May 1. 1. Prepare the entry that Anderson Company should make on May 1s to record this event. 2. Record this event/entry in the Horizontal Financial Statement format below. Add any account titles/headings you need in the proper sections. Assets Liabilities Stockholders' Eq. Income Statement St. of Cash Flows 3. What amount of Marketing Research Expense should Anderson show on its 2017 Income Statement related to this contract? 4. Prepare the adjusting entry Anderson should make on December 31, 2017 related to this contract. 5. Record Anderson's adjusting entry in the Horizontal Financial Statement format below. Assets Liabilities Stockholders' Eq. Income St. of Cash Rowe e & Expense 4. Prepare the adjusting entry Anderson should make on December 31, 2017 related to this contract. 5. Record Anderson's adjusting entry in the Horizontal Financial Statement format below. Assets Liabilities Stockholders' Eq. Income Statement St. of Cash Flows
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