The Following Information Has Been Gathered for Stylish Co

question 70

Essay

The following information has been gathered for Stylish Co. to assist in preparing its year-end adjusting entries at December 31:
(a) The company has earned $2,500 of rental revenue that has not yet been received or recorded.
(b) Stylish has recorded $3,200 of unearned service fees. At year-end, $1,500 of this amount has been earned.
(c) Depreciation on equipment for the year is $7,800.
(d) Employees have earned but have not yet been paid $2,750 in salaries.
Identify which of the above accounting adjustment would be reversed assuming Stylish Co. uses reversing entries.

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Definitions:

TPS

Transaction Processing System; a computerized system that performs and records daily routine transactions necessary to conduct business.

Real Time

The processing of data or the delivery of information immediately after collection, without noticeable delay, allowing for immediate action or response.

Ziosk

A brand name for a tablet-like device used in restaurants that allows customers to order food, pay their bill, and entertain themselves while waiting.

Tips

Voluntary payments made to certain service workers in addition to the basic price for services rendered.