Mastering Adjusting Entries The following information relates to questions 31 and 32: CBA Co. uses accrual basis accounting. It collects $20,000 in December for a job and credits unearned revenue. By the end of December, its year end. CBA has completed 40% of the work. 31. How much revenue has CBA earned in December? a. $20,000 b. $12,000 c. $8,000 d. $0 32. Which accounts does CBA debit and credit in the adjusting journal entry on December 31? a. Unearned Revenue Cash To reflect revenue earned c. Revenue Unearned Revenue To reflect revenue earned b. Unearned Revenue Revenue To reflect revenue earned d. Cash Revenue To reflect revenue earned 33. When revenue is credited, it increases revenue. a. True b. False 34. Unearned Revenue is what type of account? a. asset b. liability c. revenue d. expense 35. In accrual basis accounting, "recognized" would mean... a. paid. b. received. c. incurred. d. recorded. 36. With prepaid supplies, cash payment follows recording of the expense. a. True b. False