Ask Question
BusinessBusiness
27 May, 15:37

Tao co. Receives $10,000 cash in advance for four months of legal services on october 1, 2016, and records it by debiting cash and crediting unearned revenue both for $10,000. It is now december 31, 2016, and tao has provided legal services as planned. What adjusting entry should tao make to account for the work performed from october 1 through december 31, 2016?

+2
Answers (1)
  1. 27 May, 16:35
    0
    Adjusting entry to account for the work performed from October 1 through December 31, 2016:

    It is given that Tao co. Receives $10,000 cash in advance for four months of legal services on October 1, 2016, and records it by debiting cash and crediting unearned revenue both for $10,000.

    It is now December 31, 2016, and tao has provided legal services as planned so now we need to recognize the revenue for the period of Oct 1 to Dec. 31 (3 months), which shall be (10000*3/4) = $7,500

    The Adjusting entry account for the work performed from October 1 through December 31, 2016, shall be as follows:

    Unearned revenue Debit $7,500

    Revenue Credit $7,500

    (Being adjustment made for the revenue earned)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Tao co. Receives $10,000 cash in advance for four months of legal services on october 1, 2016, and records it by debiting cash and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
When does a business make a profit? A business makes a profit when its exceed its.
Answers (1)
A single-channel queuing system has an average service time of 10 minutes and an average time between customer arrivals of 15 minutes. Service times and inter-arrival times both have exponential distributions. Find: a. customer arrival rate b.
Answers (1)
Do you believe self-regulatory practices are sufficient without governmental regulation to protect consumers? If not, what type of protection and for whom do you believe it is necessary? Explain
Answers (1)
You expect that an investment could gain or lose as much as 20% in a year. Your investment is $5,000. What is the lowest value you expect at the end of the year?
Answers (1)
What do the proclamation line of 1763 the stamp act of 1765 and the townshend act of 1767 have in common?
Answers (1)
New Questions in Business
For each event, explain whether the initial effect is a change in planned investment spending or a change in unplanned inventory investment, and indicate the direction of the change. A. an unexpected increase in consumer spending B.
Answers (1)
In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financlal reporting, the rent Is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property.
Answers (1)
Which of the following are examples of the investment component of GDP? If the statement is an example of investment as it pertains to GDP, then drag and drop it into the / " Examples of Investment/" bin.
Answers (1)
2. paul wants to start a landscaping business. an example of a differentiation strategy he might try is
Answers (1)
Factory workers are constantly encouraged to practice zero tolerance when it comes to accidents in factories.
Answers (1)
Home » Business » Tao co. Receives $10,000 cash in advance for four months of legal services on october 1, 2016, and records it by debiting cash and crediting unearned revenue both for $10,000.
Sign Up Forgot Password?