Auto Detailing,Inc.had the Following Transactions on August 1

question 42

Essay

Auto Detailing,Inc.had the following transactions on August 1:
a.The company sold $2,100 of inventory costing $1,400.The customer will not be billed until September.As of August 31,no entries have been made with respect to the inventory that has been sold or the sale.
b.The company received a $2,000 payment from a customer for services to be performed during August and September.On August 1,the entire $2,000 was placed in the Unearned Revenue account.As of August 31,40% of the work had been completed.
c.The company paid $7,200 for 4 months' rent in advance.The entire amount was placed into Prepaid Rent.
d.The company sold equipment costing $2,400 for $5,400 to a customer in return for a 3-month note.The sale was properly recorded on August 1.Auto Detailing,Inc.is charging 12% interest on the note.The customer will pay the note and all interest after 3 months.
Prepare the appropriate journal entries for Auto Detailing,Inc.as of August 31,for each of the above transactions.

Acknowledge the significance of emotion recognition and ethical issues in communication technology.

Realize the importance of the statement of purpose in report preparation and clarity in report type distinction.

Understand different approaches (direct and indirect) in structuring business reports for effective communication.

Understand the difference between various types of reports and their purposes.

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Definitions:

Audited

The process of officially inspecting an individual's or organization's accounts by an independent body to ensure accuracy and compliance with laws and regulations.

Non-cash Items

Expenses or incomes recorded in the income statement which do not involve actual cash flow, such as depreciation, stock-based compensation, or provisions.

Cash Flow

The overall aggregation of money movement into and out of a firm, essentially determining its ability to quickly mobilize assets.

Revenues

Revenue obtained through standard business activities, factoring in discounts and allowances for goods returned.