Question
On November 1, 2016, J&J Inc. received $12,000 from a customer for services to be performed evenly over the period November 1, 2016 January 31,
On November 1, 2016, J&J Inc. received $12,000 from a customer for services to be performed evenly over the period November 1, 2016 January 31, 2017. What adjusting entry should J&J record on December 31, 2016? Assume that no other adjusting entries have been recorded yet this year.
Multiple Choice
-
Service revenue
12,000
Cash
12,000
-
Cash
12,000
Service revenue
12,000
-
Deferred service revenue
8,000
Service revenue
8,000
-
Cash
8,000
Deferred service revenue
8,000
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Managerial Accounting
Authors: Paul E. Dascher, Jerry R. Strawser, Robert H. Strawser, Ronald M. Copeland
8th Edition
0873937643, 978-0873937641
