(i) Accrued interest on the note payable at June 30 amounted to $320. (ii) Salary earned by a member of the office staff amounting to $2,240 has not been provided for as at June 30. (ii) Many clients are asked to make an advance payment for the legal services to be rendered in future months. These advance payments are credited to the Unearned Retainer Fees account until they are earned. During June 2020, $9,200 of these advances were earned by the firm. (iv) Some clients are not billed until all services relating to their matter have been rendered. As at June 30, $6,280 had been earned but no record of this was made in the accounting records.

(i) Accrued interest on the note payable at June 30 amounted to $320. (ii) Salary earned by a member of the office staff amounting to $2,240 has not been provided for as at June 30. (ii) Many clients are asked to make an advance payment for the legal services to be rendered in future months. These advance payments are credited to the Unearned Retainer Fees account until they are earned. During June 2020, $9,200 of these advances were earned by the firm. (iv) Some clients are not billed until all services relating to their matter have been rendered. As at June 30, $6,280 had been earned but no record of this was made in the accounting records.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.4E: Accruals and Deferrals For the following situations, indicate whether each involves a deferred...

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