icatana
Oct 19, 2010, 06:52 PM
I would really appreciate some help regarding this problem:
Projected amount of unearned revenue on the forecast balance sheet for 2010 is $105,000.
Contracts outstanding at the end of 2010:
Service Contract 1, dated October 1, 2010; service for six months $42,000
Service Contract 2, dated November 1, 2010; service for one year 75,000
Service Contract 3, dated December 1, 2010; service for one year 90,000
• Based on the information provided, determine the amount of unearned revenue that should be reported on the balance sheet at the end of 2010. Assume that the company will provide services evenly over the contract period.
• Based on your calculation in (a), prepare the journal entry to record the correct amount of unearned revenue at the end of 2010.
Projected amount of unearned revenue on the forecast balance sheet for 2010 is $105,000.
Contracts outstanding at the end of 2010:
Service Contract 1, dated October 1, 2010; service for six months $42,000
Service Contract 2, dated November 1, 2010; service for one year 75,000
Service Contract 3, dated December 1, 2010; service for one year 90,000
• Based on the information provided, determine the amount of unearned revenue that should be reported on the balance sheet at the end of 2010. Assume that the company will provide services evenly over the contract period.
• Based on your calculation in (a), prepare the journal entry to record the correct amount of unearned revenue at the end of 2010.