Question
Please answer all three questions per chegg guidelines. Thank you 1. A company had the following journal entry. What is the mostly likely description for
Please answer all three questions per chegg guidelines. Thank you
1. A company had the following journal entry. What is the mostly likely description for the transaction that occurred?
dr. | Unearned Revenue | 200 | ||
cr. | Service Revenue | 200 |
a. The company is collecting cash from a customer in advance.
b. The company is paying for customer services.
c. The company is earning service revenue and is billing the customer for payment.
d. The company is earning service revenue, which was paid by the customer in advance.
2. Which of the following accounts increases with a credit?
a.Service Revenue
b.Depreciation Expense
c.Dividends
d.Both Depreciation Expense and Dividends increase when credited.
e. None of the above.
3. Which of the following accounts increases with a debit?
a.Unearned Revenue
b.Accounts Receivable
c.Accounts Payable
d.Both Accounts Receivable and Accounts Payable increase when debited.
e. None of the above.
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