On September 28,2018,Benson Consulting Signs a Contract with Commercial Cleaning

question 101

Essay

On September 28,2018,Benson Consulting signs a contract with Commercial Cleaning Services.Commercial Cleaning will provide 6 months of office cleaning services for $2,000 per month.Benson Consulting pays $12,000 cash to Commercial Cleaning on September 28,2018.Cleaning services will begin on October 1,2018.Complete the following requirements for Benson Consulting.
(1)Prepare the journal entries for September 28,2018 and December 31,2018 (the end of Benson's fiscal year).Make proper journal entries (omit explanations).Deferred expenses are treated initially as assets.
(2)If Benson fails to record the December 31,2018 adjusting entry,what is the effect on net income,income statement account(s)and balance sheet account(s)?
(3)Why is it important for companies to record adjusting entries?

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Definitions:

Fertility Decisions

Choices related to the planning, delaying, or avoiding of pregnancy, often influenced by personal, medical, and socio-economic factors.

Safer Sex

Practices adopted during sexual activity to minimize the risk of contracting or transmitting sexually transmitted infections, including the use of condoms and dental dams.

Unintended Pregnancies

Pregnancies that are not planned or desired at the time of conception, often leading to complex personal and social outcomes.

Separated

The condition in which individuals who were previously jointly situated, like married couples, choose to live apart without dissolving the legal union.