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On October 1,2012,Warren Company Consulting Accepted $20,000 in Advance for a Consulting

question 83

Essay

On October 1,2012,Warren Company Consulting accepted $20,000 in advance for a consulting job that should take 12 months.At December 31,the company had completed one fourth of the job.
Required:
a)Record the effects of the above two transactions on the accounting equation.
Assets = Liabilities + Equity
Event No.
1)______________________________________________________________
2)______________________________________________________________
b)Answer the following questions pertaining to the above events.
1)What amount of revenue will appear on the 2012 income statement related to these events?
2)What amounts,if any,will appear on the balance sheet at December 31,2012?
3)What amount,if any,will appear on the 2012 statement of cash flows? In which section would the amount appear?


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