Journalizing the alternative treatment of deferred revenues, Finance Basics

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Journalizing the alternative treatment of deferred revenues

Question: Journalizing the alternative treatment of deferred revenues On October 1, 2016, Amazing Landscaping collected $30,000 in advance from customers for landscaping services. The service revenue will be earned monthly over the six-month period ending March 31, 2017.

Requirements: 1. Journalize the entry on October 1 by using the alternative treatment of deferred revenues.

2. Record the December 31, 2016 adjusting entry

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Finance Basics: Journalizing the alternative treatment of deferred revenues

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Finance Basics: Journalizing the alternative treatment of deferred revenues

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