Question
On June 1, Benson Corporation received $1,800 as advance payment for 12 months' advertising. The receipt was recorded as an increase to Unearned Fees. What
On June 1, Benson Corporation received $1,800 as advance payment for 12 months' advertising. The receipt was recorded as an increase to Unearned Fees. What adjustment is required on December 31?
Select one:
a.
| BALANCE SHEET | INCOME STATEMENT | ||||||
|---|---|---|---|---|---|---|---|
| ASSETS | = | LIABILITIES | + | STOCKHOLDER'S EQUITY | REVENUE | - | EXPENSE |
| Unearned Fees | Advertising Revenue | ||||||
| -1,050 | +1,050 | +1,050 |
b.
| BALANCE SHEET | INCOME STATEMENT | ||||||
|---|---|---|---|---|---|---|---|
| ASSETS | = | LIABILITIES | + | STOCKHOLDER'S EQUITY | REVENUE | - | EXPENSE |
| Unearned Fees | Advertising Revenue | ||||||
| -750 | +750 | +750 |
c.
| BALANCE SHEET | INCOME STATEMENT | ||||||
|---|---|---|---|---|---|---|---|
| ASSETS | = | LIABILITIES | + | STOCKHOLDER'S EQUITY | REVENUE | - | EXPENSE |
| Unearned Fees | Advertising Revenue | ||||||
| -900 | +900 | +900 |
d.
| BALANCE SHEET | INCOME STATEMENT | ||||||
|---|---|---|---|---|---|---|---|
| ASSETS | = | LIABILITIES | + | STOCKHOLDER'S EQUITY | REVENUE | - | EXPENSE |
| Unearned Fees | Advertising Revenue | ||||||
| +1,050 | -1,050 | -1,050 |
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Accounting And Business Ethics An Introduction
Authors: Ken McPhail, Diane Walters
1st Edition
0674018788, 9780415362368
