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. Prepare the journal entry for the receipt of the customer deposit on June 1.
2. Prepare the adjusting entry on June 30.
3. What will be the effect on net income for June if the entry in (2) is not recorded?

Question

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. Prepare the journal entry for the receipt of the customer deposit on June 1.
2. Prepare the adjusting entry on June 30.
3. What will be the effect on net income for June if the entry in (2) is not recorded?

Quizplus · Accepted Answer

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. Prepare the journal entry for the receipt of the customer deposit on June 1.
2. Prepare the adjusting entry on June 30.
3. What will be the effect on net income for June if the entry in (2) is not recorded?

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