In: Accounting
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
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 |