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Zentea Limited offers excavation services. On 28 February 2023 , the accountant recorded the following journal entry and posted it to the ledger: During February
Zentea Limited offers excavation services. On 28 February 2023 , the accountant recorded the following journal entry and posted it to the ledger: During February 2023, Zentea Limited signed a R2 000000 contract for excavation work to be done for Poleum (Pty) Ltd. Zentea Limited agreed to start on 1 April 2023 and on 28 February 2023 , the company received a deposit of R400 000 from Poleum (Pty) Ltd. The full R400 000 was recorded as service fee income as indicated above. Source: Daniels, J.C. 2023 Required 1.1 Prepare the adjusting general journal entry that Zentea Limited should process relating to the R400 000 cash received. Ignore VAT and do not provide narrations. 1.2 Explain the element you have chosen to credit in the journal entry above. Refer only to the definition of the element in accordance with the conceptual framework
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