The Following Activities Took Place During the Month of July

question 150

Essay

The following activities took place during the month of July at a corporation that earns service revenue as a law firm.
1.The law firm completes legal work relating to a real estate transaction and is paid $5,500 when the papers are signed.
2.Legal work in the amount of $26,000 is performed on account for customers.
3.A customer makes a payment of $2,500 on account for legal services that were performed last month.
4.A new client calls to request assistance in filing the documents for a patent; a fee of $3,000 is paid and the parties agree that the work will commence next month.
5.A client pays a retainer (deposit)of $15,000 for legal work; one-third of the work is performed in the current month and the remainder will be provided over the next two months.
6.The law firm borrows $10,000 from a local bank.
Required:
Indicate what accounts would be used to record the initial transaction arising from each activity.

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Definitions:

Minimum

The least or smallest amount or quantity possible, attainable, or required.

Cardiac Cycle

The sequence of events in the heart during one heartbeat, including contraction and relaxation phases that circulate blood throughout the body.

Electrocardiogram

A test that measures the electrical activity of the heart to check for heart disease.

Waves

Oscillations or movements that transfer energy from one place to another, found in physical and electromagnetic contexts.