Question
Earlier in the year, Alpha received $10,000 cash from a customer for services to be performed in the future. The entire amount was recorded as
Earlier in the year, Alpha received $10,000 cash from a customer for services to be performed in the future. The entire amount was recorded as a liability. By the end of the year, $6,000 of the services had not yet been performed. The required adjusting journal entry to be recorded on December 31 (end of year) is
Group of answer choices
Debit Unearned Service Revenue 6,000, credit Service Revenue 6,000
Debit Service Revenue 4,000, credit Unearned Service Revenue 4,000
The correct answer is not listed.
Debit Service Revenue 6,000, credit Unearned Service Revenue 6,000
Debit Unearned Service Revenue 4,000, credit Service Revenue 4,000
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
16th Edition
78110939, 978-0078110931
