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    Mate Ease Is An Internet Dating Service All Members Pay

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    trilocksp Singh
    Mate Ease is an Internet dating service where all members pay in advance to be listed in the database. The document provides financial information for Mate Ease as of December 31, year 1, including adjusting entries that need to be made. It also asks for the balances of several accounts after the adjustments. Advance payments are initially recorded as unearned revenue and recognized over time as memberships are used.

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    Mate Ease Is An Internet Dating Service All Members Pay

    Uploaded by

    trilocksp Singh
    141 views2 pages
    Mate Ease is an Internet dating service where all members pay in advance to be listed in the database. The document provides financial information for Mate Ease as of December 31, year 1, including adjusting entries that need to be made. It also asks for the balances of several accounts after the adjustments. Advance payments are initially recorded as unearned revenue and recognized over time as memberships are used.

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    Mate Ease is an Internet dating service where all members pay in advance to be listed in the database. The document provides financial information for Mate Ease as of December 31, year 1, including adjusting entries that need to be made. It also asks for the balances of several accounts after the adjustments. Advance payments are initially recorded as unearned revenue and recognized over time as memberships are used.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    141 views2 pages

    Mate Ease Is An Internet Dating Service All Members Pay

    Uploaded by

    trilocksp Singh
    Mate Ease is an Internet dating service where all members pay in advance to be listed in the database. The document provides financial information for Mate Ease as of December 31, year 1, including adjusting entries that need to be made. It also asks for the balances of several accounts after the adjustments. Advance payments are initially recorded as unearned revenue and recognized over time as memberships are used.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Mate Ease is an Internet dating service All members pay

    Mate Ease is an Internet dating service. All members pay in advance to be listed in the
    database. Advance payments are credited to an account entitled Unearned Member Dues.
    Adjusting entries are performed on a monthly basis. An unadjusted trial balance dated
    December 31, year 1, follows. (Bear in mind that adjusting entries have already been made for
    the first 11 months of year 1, but not for December.)

    Other Data

    1. Records show that $25,200 of cash receipts originally recorded as unearned member dues
    had been earned as of December 31, year 1.

    2. The company purchased a six-month insurance policy on October 1, year 1, for $23,040.

    3. On November 1, year 1, the company paid $26,280 for rent through January 31, year 2.

    4. Office supplies on hand at December 31 amount to $528.

    5. All computer equipment was purchased when the business first formed. The estimated life of
    the equipment at that time was three years (or 36 months).

    6. On March 1, year 1, the company borrowed $108,000 by signing a 12-month, 10 percent note
    payable. The entire note, plus 12 months' accrued interest, is due on March 1, year 2.

    7. Accrued but unrecorded salaries at December 31 amount to $12,600.

    8. Estimated income taxes expense for the entire year totals $19,200. Taxes are due in the first
    quarter of year 2.

    Instructions

    a. For each of the numbered paragraphs, prepare the necessary adjusting entry (including an
    explanation).

    b. Determine that amount at which each of the following accounts will be reported in the
    company's balance sheet dated December 31, year 1.

    1. Cash

    2. Unexpired Insurance

    Unlock answers here solutiondone.online


    3. Prepaid Rent

    4. Office Supplies

    5. Computer Equipment

    6. Accumulated Depreciation: Computer Equipment

    7. Accounts Payable

    8. Notes Payable

    9. Salaries Payable

    10. Interest Payable

    11. Income Taxes Payable

    12. Unearned Member Dues

    c. Why doesn't the company immediately record advance payments from customers as
    revenue?

    Mate Ease is an Internet dating service All members pay


    SOLUTION-- http://solutiondone.online/downloads/mate-ease-is-an-internet-dating-service-all-
    members-pay/

    Unlock answers here solutiondone.online


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