Income Adjustment

Question 1

Service Fees collected $1 000.
Service Fees earned but yet collected $250.
What is the service fees to be recorded?

Answer 1

Service fees to be recorded
= Collected + Earned but yet collected
= $1 000 + $250
= $1 250

Question 2

Rental income collected $10 000.
Included therein is rental income collected in advance of $2 000.
What is the Rental income to be recorded?

Answer 2

Rental income to be recorded
= Collected - Collected in advance
= $10 000 - $2 000
= $8 000

Question 3

Consultation fee collected $20 000.
Included therein is Consultation fee collected in advance of $2 000 and consultation service yet performed.
What is the Consultation fees to be recorded?

Answer 3

Consultation fee to be recorded
= Collected - Collected in advance
= $20 000 - $2 000
= $18 000

Question 4

Rental income collected $10 000
Rental income earned but yet collected $1 500
What is the Rental income to be recorded?

Answer 4

Rental income to be recorded
= Collected + Earned but yet collected
= $10 000 + $1 500
= $11 500

Question 5

Service Fees collected $50 000.
Included therein is Service Fee collected in advance of $3 000 and service yet performed.
What is the Service fees to be recorded?

Answer 5

Service Fee to be recorded
= Collected - Collected in advance
= $50 000 - $3 000
= $47 000

Question 6

Service fees collected $20 000.
Service fees earn but yet collected $3 800.
What is the service fees to be recorded?

Answer 6

Service fees to be recorded
= Collected + Earn yet collected
= $20 000 + $3 800
= $23 800

Question 7

What is the journal entries to record a cash sale of goods of $5 000?

Answer 7

Dr Cash in hand $5 000
Cr Sales Revenue $5 000

Question 8

What is the journal entries to record a credit sale of goods of $5 000 to ABC Ltd?

Answer 8

Dr Trade Receivable - ABC $5 000
Cr Sales Revenue $5 000

Question 9

What is the journal entries to record a return of goods by ABC Ltd previously sold to them at $200?

Answer 9

Dr Sales Return $200
Cr Trade Receivable - ABC $200

Question 10

What is the journal entries to record a provision of consultancy services for $100 000 cash?

Answer 10

Dr Cash in hand $100 000
Cr Service fee $100 000

Question 11

What is the journal entries to record a provision of consultancy services to DEF Ltd on credit for $20 000?

Answer 11

Dr Trade Receivable - DEF Ltd $20000
Cr Service Fee $20000

Question 12

What is the different between Sales revenue and Service fee revenue?

Answer 12

Sales revenue is used to record the sale of goods while Service fee revenue is used to record the provision of service.

Question 13

What is the journal entries when ABC consultancy received rental income of $22 000 cash?

Answer 13

Dr Cash in hand $22 000
Cr Rental income $22 000

Question 14

What is the formulae to compute net sales revenue?

Answer 14

Sales revenue
Less : Sales return
————————–
Net sales revenue
===============

Question 15

What is the formulae to compute gross profit?

Answer 15

Sales revenue
Less : Sales return
————————–
Net sales revenue
Less : Cost of sales
————————–
Gross Profit
===============