Question

Adams Co. received $2,800 cash from Hi Global on June 2, 2016 for services to be rendered in future. The full amount was credited by Adams Co. to the liability account Unearned Service Revenue. On the other hand, Hi Global recorded the full amount as prepaid expense. Adams Co. performed the service required over a 3-year period (2016-2018). Works performed for the years 2016, and 2017 were equal. Considering financial statements are prepared on Dec. 31, each year for both Adams Co. and Hi Global. Additional information is the following adjusting entry that was prepared by Adams Co.at the end of 2018: ... Unearned Service Revenue 342 [Dr...... .....Service Revenue 342 ...[Cr..... a- The adjusted trail balance prepared by Hi Global on Dec. 31, 2017, will show Prepaid Exp. of: $ ... b- The unadjusted trail balance prepared by Adams Co.on Dec. 31, 2018, will show Unearned Ser. Rev.of: $....... Retained earnings reported by Adams Co.as of 31/12/2018 will eventually be affected by a total of: $.....

Answer 1