A select list of transactions for Goals follows:
For each transaction, identify what type of adjusting entry would be needed. Select from the following four types of adjusting entries: deferred expense, deferred revenue, accrued expense, and accrued revenue.
Apr. 1 Paid six months of rent, $4,800.
10 Received $1,200 from customer for six month service contract that began April 1.
Apr. 15 Purchased a computer for $1,000.
Apr. 18 Purchased $300 of office supplies on account.
Apr. 30 Work performed but not yet billed to customer, $500
Apr. 30 Employees earned $600 in salaries that will be paid May 2.

Question

contestada

Respuesta :

anthougo anthougo · Answer 1 · 2021-07-25T02:45:45+02:00

Answer:

Goals

Identification of Needed Adjusting Entry:

Transaction Adjusting Entry Type

Apr. 1 Paid six months of rent, $4,800. Deferred expense

Apr. 10 Received $1,200 from customer for Deferred revenue

six month service contract that began April 1.

Apr. 15 Purchased a computer for $1,000. Deferred expense

Apr. 18 Purchased $300 of office

supplies on account. Accrued expense

Apr. 30 Work performed but not yet

billed to customer, $500 Accrued revenue

Apr. 30 Employees earned $600 in Accrued expense

salaries that will be paid May 2.

Explanation:

Four types of adjusting entries:

Goal's deferred expense refers to an expense that Goal will incur in future periods but already paid for.

Goal's deferred revenue includes its revenue received in advance of service.

Goal's accrued expense refers to an expense that has been incurred but not yet paid for.

Goal's accrued revenue includes revenue that has been earned but not yet received.