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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 67
Journalizing transactions and posting
Washington Law Firm performed legal services for a client who could not pay immediately. The business expected to collect the $16,000 the following month. Later, the business received $9,600 cash from the client.
Requirements
1. Record the two transactions for Washington Law Firm. Include an explanation for each transaction.
2. Open these T-accounts: Cash; Accounts receivable; Service revenue. Post to all three accounts. Compute each T-account's balance, and denote as Bal.
3. Answer these questions based on your analysis:
a. How much did the business earn Which account shows this amount
b. How much in total assets did the business acquire as a result of the two transactions Identify each asset and show its balance.
Washington Law Firm performed legal services for a client who could not pay immediately. The business expected to collect the $16,000 the following month. Later, the business received $9,600 cash from the client.
Requirements
1. Record the two transactions for Washington Law Firm. Include an explanation for each transaction.
2. Open these T-accounts: Cash; Accounts receivable; Service revenue. Post to all three accounts. Compute each T-account's balance, and denote as Bal.
3. Answer these questions based on your analysis:
a. How much did the business earn Which account shows this amount
b. How much in total assets did the business acquire as a result of the two transactions Identify each asset and show its balance.
Explanation
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1. This exercise requires knowledge and ...
Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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