Waverly Corporation encounters the following situations:1. Waverly collects $1,750 from a customer in 2014 for services to be performed in 2015.2. Waverly incurs utility expense which is not yet paid in cash or recorded.3. Waverly employees worked 3 days in 2014 but will not be paid until 2015.4. Waverly performs services for a customer but has not yet received cash or recorded the transaction.5. Waverly paid $2,400 rent on December 1 for the 4 months starting December 1.6. Waverly received cash for future services and recorded a liability until the service was performed.7. Waverly performed consulting services for a client in December 2014. On December 31, it had not billed the client for services provided of $1,200.8. Waverly paid cash for an expense and recorded an asset until the item was used up.9. Waverly purchased $750 of supplies in 2014; at year-end, $400 of supplies remain unused.10. Waverly purchased equipment on January 1, 2014; the equipment will be used for 5 years.11. Waverly borrowed $10,000 on October 1, 2014, signing an 8% one-year note payable.InstructionsIdentify what type of adjusting entry (prepaid expense, unearned revenue, accrued expense, or accrued revenue) is needed in each situation, at December 31, 2014.View Solution:
Waverly Corporation encounters the following situations 1 Wave

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *