1. Jefferson Cleaning signed an agreement with Willis Company on December 15 to provide cleaning services every Friday. The services will be billed to Willis Company on the fifteenth of each month at a rate of $15 per hour. As of December 31, Jefferson Cleaning had provided 15 hours of cleaning services to Willis Company. Which of the following is the required adjusting entry that Jefferson Cleaning should make on December 31? a. Debit Accounts Receivable, $225; credit Fees Earned, $225 b. Debit Fees Earned, $225; credit Accounts Receivable, < $225 c. Debit Accounts Payable, $225; credit Fees Earned, $225 d. Debit Fees Earned, $225; credit Accounts Payable, $225 2. On December 31, Evans Electronics owes $350 of wages to its employees. If the amount for the $350 of wages owed is not recorded, which of the following will occur on Evans's financial statements? a. Expenses and net income will be understated by $350. b. Liabilities and net income will be understated by $350. c. Expenses will be understated and stockholders' equity will be overstated by $350. d. Liabilities will be overstated and stockholders' equity will be understated by $350. Previous Next