During June, Anna Magazine sold for cash six advertising spaces for $400 each to be run in the July through December issues. On that date, Zorba properly recognized Unearned Revenue. The adjusting entry to record on July 31 includes:

Question 2 options:

1)

A debit to Unearned Revenue for $2,000

2)

A credit to Unearned Revenue for $400

3)

A credit to Revenue for $2,000

4)

A debit to Cash for $2,000

5)

None of these