Determine the balance in unearned revenue

Assignment Help Financial Accounting

Reference no: EM131257403

All-Weather Walks is a lucrative paving stone installation business that operates from about April to October each year. Clients arrange for their own paving stones and All-Weather is contracted to provide the installation. The company has an outstanding reputation for the quality of its work and as a result pre-books customers a full year in advance. Customers must pay 40% at the time of booking and the balance on the completion date of the job. All-Weather records the 40% cash advance received from customers in the Unearned Revenues account. The December 31, 2014, balance sheet shows Unearned Revenues totalling $1,360,000. During 2015, $2,875,000 of cash was collected in total from customers: $2,070,000 regarding work completed during the year for customers who paid 40% down in 2014, and the balance representing the 40% prepayments for work to be done in 2016.

Determine the balance in Unearned Revenue at December 31, 2015. (Round your answer to the nearest whole dollar amount.)

Reference no: EM131257403

Questions Cloud

What does trust have to do with bioethics give examples : What does "trust" have to do with bioethics? Give examples. If you were trying to convince a patient in a third-world country that a Western, first-world doctor is trustworthy, how would you go about it?

Inventory by the conventional retail inventory method : Compute the inventory by the conventional retail inventory method. Sales Revenue 99,000. Sales Returns 2,000. Markups 10,000. Markup cancellations 1,500.

Cash equivalents and investments on balance sheet : Classification of cash equivalents and investments on balance sheet. Classify each of the following items as a cash equivalent, a short-term investment, or a long-term investment,

Record the issuance of the bonds and warrants : Eisler Corporation issued 2,490 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 99, and the warrants had a market price of $44.Use the proportional method to record ..

Determine the balance in unearned revenue : All-Weather Walks is a lucrative paving stone installation business that operates from about April to October each year. Clients arrange for their own paving stones and All-Weather is contracted to provide the installation. The company has an outstan..

Net income on operations from discontinued component : On July 4, Y2, ABC Inc. sold a component of their business to XYZ Inc. for $690,000. ABC determined the component would be discontinued in Y1 and properly reported the component in the discontinued operations section of the income statement. Determin..

Ending inventory at costusing conventional retail method : Boyne Inc. had beginning inventory of $12,000 at cost and $20,000 at retail. Netpurchases were $120,000 at cost and $170,000 at retail. Net markups were $10,000; netmark downs were $7,000; and sales revenue was $147,000. Compute ending inventory at c..

The expected overhead costs for the next fiscal year : Cain Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include the following. Cain uses machine hours as the cost driver to allocate overhead cost..

Prepare journal entries to record the purchase of materials : During December, Deller Corporation purchased $79,000 of raw materials on credit to add to its raw materials inventory. A total of $68,000 of raw materials was requisitioned from the storeroom for use in production. These requisitioned raw materials ..

User Account

All Pages