Kay Company receives a cash payment of $4,000 on November 12 for services it will perform in December. Assume that December 31 is Kay Companys fiscal year end. What adjusting journal entry should Kay record at December 31 related to the payment received in November?

Question 3 options:

	Debit Service Revenue for $4,000, Credit Unearned Service Revenue for $4,000.
	Debit Service Revenue for $4,000, Credit Cash for $4,000.
	Debit Cash for $4,000, Credit Service Revenue for $4,000.
	Debit Unearned Service Revenue for $4,000, Credit Service Revenue for $4,000.

Question 4 (1 point)

The employees of Kay Company work during the last week of the December and earn $5,000 of wages. Kay Companys regular payroll cycle will pay the paychecks for the December work in January. According to the expense recognition principle (accrual accounting), when will Kay Company recognize the expense from the employees labor?

Question 4 options:

	None of these answers.
	February.
	January.
	December.