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Problem
Listed below are a few transactions and events of Yacht Company. 1. Yacht Company records an adjusting entry for $120,000 of previously unrecorded cash sales (costing $60,000) and its sales taxes at a rate of 6%.
2. The company earned $24,000 of $60,000 previously received in advance for services.
Prepare any necessary adjusting entries at December 31, 2011, for Yacht Company's year-end financial statements for each of the above separate transactions and events.
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