On December 15,2018,Donald Services Company Collected Revenue of $3,000 in Advance

question 148

Essay

On December 15,2018,Donald Services Company collected revenue of $3,000 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.Assume that the company records deferred revenues using the alternative treatment,and journalize the adjusting entry recorded on December 31,2018.Omit explanation.

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Definitions:

Goodwill

The intangible asset that arises when a business is purchased for more than the sum of its net assets' fair market value, reflecting brand, customer loyalty, and other non-physical assets.

Depletion

The allocation of the cost of natural resources over their useful life or extraction period.

Double-Declining-Balance Method

A method of accelerated depreciation where an asset's book value is reduced at double the rate of its straight-line depreciation.

MACRS

Stands for Modified Accelerated Cost Recovery System, which is a method of depreciation used for tax purposes in the United States that allows for faster depreciation of assets.