1. Phoenix Fitness Centers have 15,000 members whose monthly dues are $100 each. The company does not send individual bills to customers, who have until the 10th day of the month following the month of service to pay their monthly dues. On December 31 the companys records show that 7,000 customers have already paid their December dues, and the payments were properly recorded.

The adjusting entry to be recorded on December 31 will include:

Select one:

a. An Increase to Membership Revenue of $1,500,000

b. An increase to Membership Revenue of $700,000

c. An increase to Accounts Receivable of $800,000

d. An increase to Accounts Receivable of $700,000

2.

Mary Benoit has performed $1,500 of CPA services for a client but has not billed the client as of the end of the accounting period. What is the effect of the adjustment Mary will make?

Select one:

a. Decrease Unearned Revenue and increase Service Revenue

b. Increase Accounts Receivable and Unearned Revenue

c. Increase Cash and Unearned Revenue

d. Increase Accounts Receivable and Service Revenue