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AAA Consulting Services collected $6,000 cash for services to be provided in the future. Which of the following shows how recognizing the cash receipt will

AAA Consulting Services collected $6,000 cash for services to be provided in the future. Which of the following shows how recognizing the cash receipt will affect the companys ledger accounts?

A.

Assets = Liabilities + Stockholders Equity
Cash +

Prepaid Rent

=

Unearned Revenue

+ Common Stock + Retained Earnings
6,000 6,000

B.

Assets = Liabilities + Stockholders Equity
Cash +

Prepaid Rent

=

Unearned Revenue

+ Common Stock + Retained Earnings
(6,000) 6,000

C.

Assets = Liabilities + Stockholders Equity
Cash + Prepaid Rent = Unearned Revenue + Common Stock + Retained Earnings
6,000 6,000

D.

Assets = Liabilities + Stockholders Equity
Cash +

Prepaid Rent

=

Unearned Revenue

+ Common Stock + Retained Earnings
6,000 (6,000)

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