Jupiter Services Sells Service Plans for Commercial Computer Maintenance

question 91

Essay

Jupiter Services sells service plans for commercial computer maintenance.The price for each service plan is $1,650 per year,paid in advance.On October 1,2018,a service plan was sold to a new customer for cash.Prepare the journal entry to record this transaction.Omit explanation.

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Definitions:

Economic Event

An economic event is an occurrence that has a significant impact on the economic landscape, potentially altering market conditions, business environments, or financial positions.

Callable Bond

A type of bond that can be repaid by the issuer before its maturity date, typically at a premium to the face value.

Puttable Bond

Puttable Bond is a type of bond that gives the holder the right to force the issuer to buy back the bond at a specified price before maturity.

Bondholder

A bondholder is an investor or entity that owns a bond issued by a borrower, entitling them to receive the bond's face value at maturity, along with periodic interest payments.