Prepare a Journal Entry on October 12 for the Fees

question 141

Essay

Prepare a journal entry on October 12 for the fees earned on account, $14,600. Omit explanation.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presenting the financial performance and position at a given period.

Qualitative Characteristics

The attributes that make the information provided in financial statements useful to users, such as relevance and reliability.

Comparability

The quality that allows users to analyze trends in financial data across different time periods within a company or compare financial data across companies.

Understandability

Understandability in accounting means financial information should be presented clearly and concisely, making it easy for users to comprehend.