Epee Inc Frequently Has Accrued Revenues at the End of Its

question 138

Essay

Epee Inc. frequently has accrued revenues at the end of its fiscal year that should be recorded for proper financial statement presentation. Epee Inc.'s fiscal year ends on September 30 of the current year. Epee Inc. has determined through an evaluation of invoices and services rendered that $32,000 of services has been provided as of September 30, but not yet billed. The total contract to be billed for services when completed will be $60,000. Record the following entries:
(a) Accrual of the revenues on September 30.
(b) Receipt of payment from customers on October 9 for the services rendered, assuming that Epee does not prepare reversing entries.
(c) Assuming that Epee prepares reversing entries, reverse the adjusting entry made on September 30.
(d) Assuming that Epee prepares reversing entries, receipt of the payment for the total contract amount on October 9.

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Definitions:

Elimination

The process of removing or getting rid of something, often used in medical or biological contexts to refer to the excretion of waste from the body.

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Delusional Thinking refers to a psychological condition where an individual holds strong beliefs that are contradicted by reality or rational argument, typically a symptom of major mental illnesses like schizophrenia.

Mental Health Centers

Facilities focused on providing a variety of services for mental health care, including diagnosis, counseling, therapy, and support.

Psychotherapy

A form of therapy involving psychological methods, particularly when based on regular personal interaction with adults, to help a person change behavior and overcome problems in desired ways.