Question 1
Facts:
A company, X Inc, is in the software business and sells software as a service
In January 2023, X invoiced its customer $1,400,000
Of that amount, $200,000 was related to services delivered in January 2023
And $1,200,000 was related to a platform fee for the entire year 2023
Question:
Write the debits and credits for these transactions
Answer:
Question 2
Facts:
A company, X Inc, is in the software business and will be holding a conference in January 2024
Current customers are invited to speak about their experience working with your company
The purpose of the event is generate more interest and leads for the business
Leading up to the event, X Inc pays in July 2023 $50K reservation fee
for the event hall and $30K to the staging company for lighting, stage prep, etc
Question:
Write the debits and credits for these transactions
Answer:
Question 3
Facts:
A company X ordered $300,000 worth of Inventory on Feb 14th, 2024
Vendor terms were FOB Destination
Inventory was delivered on Feb 28th, 2024
Invoice was issued by the vendor on March 11st, 2024
Question:
Write the debits and credits for these transactions
Answer:
Question 4
Facts:
During August, an ice cream shop purchased $2,000 in supplies.
One half of supplies was purchased with Cash and the other half was purchased orl credit.
Question:
What is the journal entry for this transaction?
Answer:
Question 5
Facts:
Each quarter, the shop buys 3 months of rent in advance for $6,200.
Question 5.A:
It is the beginning of the first quarter, what entry will they record?
Answer:
Question 5.B:
After the end of the first month, what entry will they record?
Answer: