Ask Question
BusinessBusiness
12 October, 20:59

Julie Lambert has a large catering company. On May 1, a new client paid a 25% deposit of S1000 in advance of an event. The remaining balance of $3,000 was paid on June 15, when the event was catered. Which journal entry should Lambert record on June 15? 03 Multiple Choice A. Debit Cash $3,000 debit Unearned Catering Revenue $1.000; credit Catering Revenue Earned $4,000 B. Debit Cash $3.000; credit Unearned Catering Revenue $3.000 C. No entry is required when the event is catered D. Debit Prepaid Catering Revenue $4,000, credit Catering Revenue Earned $4,000

+4
Answers (1)
  1. 12 October, 21:04
    0
    A. Debit Cash $3,000 debit Unearned Catering Revenue $1.000; credit Catering Revenue Earned $4,000

    Explanation:

    The journal entry is shown below:

    Cash A/c Dr $3,000

    Unearned catering revenue A/c Dr $1,000

    To Catering revenue earned A/c $4,000

    (Being unearned revenue is recorded)

    Since advance payment of $1,000 is made which is 25% of the deposit amount. So, the deposit amount would be

    = $1,000 * 100 : 25

    = $4,000

    And, the remaining balance i. e $3,000 was paid in cash so we debited the cash account with this amount
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Julie Lambert has a large catering company. On May 1, a new client paid a 25% deposit of S1000 in advance of an event. The remaining ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
What term is used to describe spread-out or low-density development beyond the edge of services and employment? edge cities sprawl common-interest developments gated communities?
Answers (1)
The trading principle formulated by Adam Smith maintained thata. differences in resource endowments determine comparative advantage. b. absolute cost differences determine the immediate basis for trade. c.
Answers (1)
A site planner has been commissioned to assess the environmental impact of a 50-unit residential complex on land that contains two natural springs. Federal regulations are the only regulations that apply to this project. True False
Answers (1)
When do you guys think rockstar games will announce GTA 6 i've been waiting for it since RDR2
Answers (1)
Schonhardt Corporation's relevant range of activity is 2,500 units to 5,500 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.60 Direct labor $ 2.
Answers (1)
New Questions in Business
Transfer payments are not included in gdp calculation because these are
Answers (1)
In which year were tobacco commercials banned from network television in the united states?
No Answers
Maggie's manager notices that she exhibits an external locus of control when she speaks about her work. Her manager should Group of answer choices a. direct Maggie toward a job with more autonomy. b.
Answers (1)
Consider this argument: "The kidnappers have taken eight people hostage and are holding them at a farmhouse just outside town. If the SWAT team assaults the farmhouse, the hostages could be killed.
Answers (1)
Rent seeking is an attempt to A. use the government for individual benefit at the expense of others. Regulatory capture is an example of this, where a regulatory agency makes decisions benefiting the firm being regulated. B.
Answers (1)
Home » Business » Julie Lambert has a large catering company. On May 1, a new client paid a 25% deposit of S1000 in advance of an event. The remaining balance of $3,000 was paid on June 15, when the event was catered.
Sign Up Forgot Password?