On November 1, Stockton Co. receives $3,600 cash from Hans Co. for consulting services to be provided

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On November 1, Stockton Co. receives $3,600 cash from Hans Co. for consulting services to be provided evenly over the period November 1 to April 30—at which time Stockton credits $3,600 to Unearned Revenue. The adjusting entry on December 31 (Stockton’s year-end) would include a

a. Debit to Unearned Revenue for $1,200.

b. Debit to Unearned Revenue for $2,400.

c. Credit to Consulting Revenue for $2,400.

d. Debit to Consulting Revenue for $1,200.

e. Credit to Cash for $3,600.

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College Accounting Ch 1-14

ISBN: 9781260904314

1st Edition

Authors: John Wild, Vernon Richardson, Ken Shaw

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