Charter Services Sells a Service Plan for Commercial Computer Maintenance

question 44

Essay

Charter Services sells a service plan for commercial computer maintenance. The price is $1,200 per year, paid in advance. On December 1, 2013, Charter sells a service plan to a new customer for cash. Please provide the journal entry to record the adjustment needed on December 31, 2013.

Recognize the benefits of a diverse work environment and how to contribute positively to it.

Understand the principles of job order cost accounting and its application in manufacturing and service environments.

Learn how to calculate and analyze the cost of goods manufactured, cost of goods sold, and inventory valuation using job order cost accounting.

Demonstrate the ability to prepare and analyze job cost sheets for tracking direct materials, direct labor, and applied overhead costs.

---

Definitions:

Outsourcing

The practice of hiring external firms or individuals to perform tasks, handle operations or provide services for an organization.

Specific Skills

Abilities or expertise that are particularly suited to specific tasks or industries, often requiring specialized training or experience.

Cost Neutrality

A financial strategy or condition where new expenditures are offset by savings or additional revenue in other areas, resulting in no net impact on the budget.

Compensation and Benefits

The package of salary, wage, and other perks provided to employees in exchange for their work and expertise.