Question

A roofing company collects fees when jobs are complete the work for one customer whose job was bid at $3000 has been completed as of december 31st but the company has not yet been build assuming adjustments are only made a year and what is the adjusting entry that company would need to make on december 31st the calendar year and

Answer 1

Adjusting entry for the Revenue earned:

It is given that the company collects fees when jobs are complete the work. For one customer whose job was bid at $3000 has been completed as of December 31st but the company has not yet been build assuming adjustments are only made a year. So we need to recognize the revenue and receivable amount on Dec. 31.

The adjusting entry as on December 31 for the Revenue earned shall be as follows:

Accounts Receivable  Debit      $3,000

Service Revenue        Credit                       $3,000

(Being adjustment made for the Revenue earned)