The following activities took place during the month of July at a corporation that earns service revenue as a law firm.
1.The law firm completes legal work relating to a real estate transaction and is paid $5,500 when the papers are signed.
2.Legal work in the amount of $26,000 is performed on account for customers.
3.A customer makes a payment of $2,500 on account for legal services that were performed last month.
4.A new client calls to request assistance in filing the documents for a patent; a fee of $3,000 is paid and the parties agree that the work will commence next month.
5.A client pays a retainer (deposit)of $15,000 for legal work; one-third of the work is performed in the current month and the remainder will be provided over the next two months.
6.The law firm borrows $10,000 from a local bank.
Required:
Indicate what accounts would be used to record the initial transaction arising from each activity.

Question

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The Answer of The following activities took place during the month of July at a corporation that earns service revenue as a law firm.
1.The law firm completes legal work relating to a real estate transaction and is paid $5,500 when the papers are signed.
2.Legal work in the amount of $26,000 is performed on account for customers.
3.A customer makes a payment of $2,500 on account for legal services that were performed last month.
4.A new client calls to request assistance in filing the documents for a patent; a fee of $3,000 is paid and the parties agree that the work will commence next month.
5.A client pays a retainer (deposit)of $15,000 for legal work; one-third of the work is performed in the current month and the remainder will be provided over the next two months.
6.The law firm borrows $10,000 from a local bank.
Required:
Indicate what accounts would be used to record the initial transaction arising from each activity.

The Following Activities Took Place During the Month of July