Duncan Services Initially Records Prepaid Expenses as Expenses,and Unearned Revenues $$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

question 75

Essay

Duncan Services initially records prepaid expenses as expenses,and unearned revenues as revenues.Then at the end of the year,they make the necessary adjustments to accrual basis.On December 15,Duncan collected revenues of $1,000 in advance from a new client,and agreed to provide services to the client for the period of December 15 through January 15 of the following year.Please provide the adjusting entry that would be needed at year-end.
$$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

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Definitions:

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 to 1.

Independent Variable

A variable in an experiment or model that is manipulated or changed to observe its effect on a dependent variable.

Dependent Variable

The variable in an experiment or study that is affected by changes in the independent variable.