If a husband and wife purchased two vehicles at one time from the same dealer, and the dealer received a total of $10,200 in cash, the dealer can view the transaction as a single transaction or two related transactions. Adjustments help the financial statements to present the best picture of whether the company's activities were profitable for the period. Option Bis incorrect because we ha. A company receives $10,000 in cash for services yet to be performed. Tax-exempt organizations are also "persons" and may need to report certain transactions. 28. Cash Received for Services Provided | Double Entry Bookkeeping Cash96,500 DEBITUnearned Revenue96,500 CREDIT. Prepare the general journal entry to record this transaction. A company bought equipment on account for $2,000. A company performs $10,000 of services and issues an invoice - Quizlet a decrease in an asset and an equal increase in expenses. Besides filing Form 8300, you also need to provide a written statement to each party whose name you included on the Form 8300 by January 31 of the year following the reportable transaction. A company received $3,000 from a customer who had previously purchased services on account. Prepare the general journal entry to record this transaction. -revenues. Prepare the general journal entry to record this transaction. Civil and criminal penalties may apply if you fail to file Form 8300 and provide a written statement to each person named on Form 8300. Prepare the general journal entry to record this transaction. Each person engaged in a trade or business who, in the course of that trade or business, receives more than $10,000 in cash in one transaction or in two or more related transactions, must file Form 8300. A person must file Form 8300 if they receive cash of more than $10,000 from the same payer or agent: The Fact Sheet contains the following examples of reporting situations: For more information about this article, please contact our tax professionals at taxalerts@windes.com or toll free at 844.4WINDES (844.494.6337). Bristle Company collected $6,000 from a customer for services previously purchased on account. On the other hand, a company that uses the accrual basis of accounting will record sales at the date of purchase and not on the date when the cash is received.

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