Asked by Roselyn Villaruz on Jul 22, 2024
Verified
On December 14,Branch Company received $3,000 cash for 30 days of consulting services that will be completed on January 13.Branch records all such prepayments by customers in a liability account.Prepare the December 31 adjusting entry.
Liability Account
An account on a company's balance sheet that records debts or obligations the company needs to pay in the future.
Adjusting Entry
Accounting entries recorded at the close of an accounting cycle to distribute expenses and revenues to the period they truly belong to.
Consulting Services
Professional advisory services provided to businesses and organizations to improve operations, strategy, and financial performance.
- Acquire insight into the rationale and procedure for making adjustments in entries, specifically regarding accrued revenues and expenses.
Verified Answer
MD
Learning Objectives
- Acquire insight into the rationale and procedure for making adjustments in entries, specifically regarding accrued revenues and expenses.