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Record Journal Entries for the Following Transactions.​​

question 16

Essay

Record journal entries for the following transactions.​​
(a) On December 1, $18,000 was received for a service contract to be performed from December 1 through April 30.​
(b) Assuming the work is performed evenly throughout the contract period, prepare the adjusting journal entry on December 31.


Definitions:

Active Markets

Markets where transactions for assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 1 Input

denotes the highest-quality and most transparent valuation inputs for financial reporting, such as quoted prices in active markets for identical assets or liabilities.

Trademarks

Signs, designs, or expressions that identify products or services of a particular source from those of others.

Primary Measurement

The initial quantification of financial transactions in terms of money, serving as the basis for further financial analysis and reporting.

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