Splish Splash Arts offers music and dance lessons. Splish Splashprepares annual financial statements and...

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Accounting

Splish Splash Arts offers music and dance lessons. Splish Splashprepares annual financial statements and has a December 31, 2017,year-end.
a) On september 1, collects 15,000 cash for dance lessonsrunning from September 1, 2017 to december 31, 2017.
b) October 1, Collects 5,000 (2,500 per month) cash to rent it'sperformance stage for the full month of December 2017 and January2018
c) October 1, 2017 collects 8,000 cash for four months of musiclessons. The lessons run from October 1, 2017 to January 31,2018.
Required: For each transaction, record the initial journal entryand the adjusting entry required on December 31, ,2017.

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3.6 Ratings (533 Votes)

All 3 transactions initial entry and adjusting entry are recorded side by side for understanding Basically when advance is received it is not treated as revenue until it is earned So far it is not See Answer

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In: AccountingSplish Splash Arts offers music and dance lessons. Splish Splashprepares annual financial statements and has...Splish Splash Arts offers music and dance lessons. Splish Splashprepares annual financial statements and has a December 31, 2017,year-end.a) On september 1, collects 15,000 cash for dance lessonsrunning from September 1, 2017 to december 31, 2017.b) October 1, Collects 5,000 (2,500 per month) cash to rent it'sperformance stage for the full month of December 2017 and January2018c) October 1, 2017 collects 8,000 cash for four months of musiclessons. The lessons run from October 1, 2017 to January 31,2018.Required: For each transaction, record the initial journal entryand the adjusting entry required on December 31, ,2017.