Requirement: Make the Journal Entries for Both of the Following

question 163

Essay

Requirement: Make the journal entries for both of the following:
(a) On December 1, $18,000 was received for a service contract to be performed from December 1 through until April 30.
(b) If the service work for this contract is performed evenly and on a regular basis throughout this period, prepare the adjusting journal entry as of year-end, December 31.

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Definitions:

Appropriate State

A legal or suitable condition or status that a subject or entity is in, according to laws or regulations.

Certificate Of Incorporation

An official document issued by a government authority that establishes a corporation's legal existence.

Corporate Charter

A legal document establishing a corporation and outlining its structure, governance, and purpose, issued by a governmental authority.

Legal Existence

The state of being recognized by law as a legal entity capable of rights and obligations.