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On March 31, Garbage Company received $2,670 in advance for 12 months of service to be provided, with the service period beginning on March 31.
On March 31, Garbage Company received $2,670 in advance for 12 months of service to be provided, with the service period beginning on March 31. This $2,670 was initially recorded as Service Revenue instead of Unearned Service Revenue. As of the end of the year, no entry has been made to adjust the amount initially recorded. The service is provided evenly throughout the year. Which ONE of the following will be included in the ADJUSTING ENTRY necessary on December 31? O A CREDIT to Unearned Service Revenue for $668 O A DEBIT to Unearned Service Revenue for $668 O A CREDIT to Service Revenue for $668 O A CREDIT to Service Revenue for $2.003 On April 1, 20X1, Botbreak Company paid $1,670 in advance for two years (24 months) of insurance, with the insurance period beginning on April 1, 20X1. This was recorded as Prepaid Insurance. Which ONE of the following will be included in the ADJUSTING ENTRY necessary on December 31, 20X1? O A CREDIT to Prepaid Insurance for $626 O A DEBIT to Insurance Expense for $1,670 O A DEBIT to Prepaid Insurance for $626 O A CREDIT to Cash for $1,670 27
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