On November 1, clients of Great Designs Company prepaid $4,250 for services to be provided in the future at a rate of $85 per hour.
(a) Journalize the receipt of cash.
(b) As of November 30, Great Designs shows that 15 hours of services have been provided on this agreement. Prepare the necessary journal entry.
(c) Determine the total unearned fees in hours and dollars at November 30.

Question

On November 1, clients of Great Designs Company prepaid $4,250 for services to be provided in the future at a rate of $85 per hour.​
(a) Journalize the receipt of cash.
(b) As of November 30, Great Designs shows that 15 hours of services have been provided on this agreement. Prepare the necessary journal entry.
(c) Determine the total unearned fees in hours and dollars at November 30.

Quizplus · Accepted Answer

The Answer of On November 1, clients of Great Designs Company prepaid $4,250 for services to be provided in the future at a rate of $85 per hour.​
(a) Journalize the receipt of cash.
(b) As of November 30, Great Designs shows that 15 hours of services have been provided on this agreement. Prepare the necessary journal entry.
(c) Determine the total unearned fees in hours and dollars at November 30.

On November 1, Clients of Great Designs Company Prepaid $4,250