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In: Accounting

On December 1 Smart Touch Learning receives $1,000 cash in advance from a client for performing​...

On December 1 Smart Touch Learning receives $1,000 cash in advance from a client for performing​ e-learning services over the next two two months ​(December 1 through January 31). When preparing its adjusting entry at the end of the fiscal period on December ​31, Smart Touch Learning would

A.​Debit: Cash $500​; ​Credit: Unearned Revenue $500

B.​Debit: Unearned Revenue $500​;​Credit: Service Revenue $500

C.​Debit: Cash $500​;​Credit: Service Revenue $500

D.​Debit: Service Revenue $500​;Credit Unearned Revenue $ 500

Solutions

Expert Solution

Smart Touch Learning
Journal Entries
01-Dec Cash $ 1,000.00
   To Unearned Revenue $ 1,000.00
Ans (B) 31st Dec Unearned Revenue $     500.00
   To Service Revenue $     500.00

ekkarill92 answered 2 years ago
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