Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On November15,Paulson Painting received a $6,000cash payment from Apex Inc. in exchange for painting services to be provided in December. When posting the journal entries

On November 15, Paulson Painting received a $6,000 cash payment from Apex Inc. in exchange for painting services to be provided in December. When posting the journal entries related to this payment, Paulson's accountant debits the Cash account for $6,000 and credits Service Revenue for $6,000. Which of the following statements best describes the results of this posting?

Select answer from the options below:
a. In Paulson's general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Service Revenue account will be too high and the ending balance for the Unearned Service Revenue account will be too low.
b. In Paulson's general ledger, the ending balances for the Cash and Service Revenue accounts will be too high. However, the ending balance for the Unearned Service Revenue account will be too low.
c. In Paulson's general ledger, the ending balance for the Cash account will be too low, the ending balance for the Service Revenue account will be too low, and the ending balance for the Unearned Service Revenue account will be too high.
d. In Paulson's general ledger, the ending balances for both the Cash account and the Service Revenue account will be correct.

Step by Step Solution

3.42 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

The detailed answer for the above question is provided below T... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting

Authors: Heintz and Parry

20th Edition

1285892070, 538489669, 9781111790301, 978-1285892078, 9780538489669, 1111790302, 978-0538745192

More Books

Students also viewed these Accounting questions

Question

Show that is one-to-one and find f(x) = J2 1 + 1 dt

Answered: 1 week ago

Question

Risk Matrix for SureMarket Database Server

Answered: 1 week ago

Question

Identify 11 essential provisions of a partnership agreement.

Answered: 1 week ago

Question

How were these childhood messages delivered? What events occurred?

Answered: 1 week ago