Brooke Accounting Services collected $15,000 from a customer on June 1 and agreed to provide accounting services during the next six months. Brooke expects to provide an equal amount of services each month.
REQUIRED:
1. Identify and analyze the transaction for the receipt of the customer deposit on June 1.
2. Identify and analyze the adjustment needed on June 30.
3. What will be the effect on net income for June if the adjustment in 2 is not made?

Question

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The Answer of Brooke Accounting Services collected $15,000 from a customer on June 1 and agreed to provide accounting services during the next six months. Brooke expects to provide an equal amount of services each month.
REQUIRED:
1. Identify and analyze the transaction for the receipt of the customer deposit on June 1.
2. Identify and analyze the adjustment needed on June 30.
3. What will be the effect on net income for June if the adjustment in 2 is not made?

Brooke Accounting Services Collected $15,000 from a Customer on June