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Turkey Town Engineering, Inc., a small engineering consulting company, had the following transactions occur on February 1, 2019. a. The company hired a firm to
Turkey Town Engineering, Inc., a small engineering consulting company, had the following transactions occur on February 1, 2019. a. The company hired a firm to clear up the mess in the accounts. $12,000 was paid cash in advance for a fixed cost contract to solve the problem. The sum of money covered 45 working days of service of which 20 occurred in February. b. The company purchased a computer for $3,250 cash. It will be used for book keeping for the next five years (60 months) and will have a zero salvage value at the end this time frame. Assume a linear depreciation based on months. C. The company accepted a contract to provide facilities design services for a small manufacturer. The contract was for 4 months of services to begin immediately. The total contracted amount was $16,000. The client paid $7,000 in advance and will pay the balance of the contract when the work is complete. (Hint: use an "Unearned Revenues" T-account) Set up T-accounts for all of the accounts affected by these three transactions and make the appropriate entries. Include any associated / anticipated transactions (specifically "adjustments") that should occur in February as a result of these transactions
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