Question

On October 31 of the current year, a contract was signed and achegue received for services to be performed by October 31 of the following year. The neared Service Revenue account was credited for $4,500. Assuming services were performed evenly during the remainder of the sea the adjusting entry on December 31 will involve a: A) credit to Unearned Service Revenue 5800 B) credit to Service Revenue for $4,000 C) credit to Service Revenue 5800 D) debit to Unearned Service Revenue $4,000 collectible accounts, the entry to record the 18. Under the allowance method for estimating estimated bad debts: A) increases total assets B) reduces net income C) has no effect on total assets D) has no effect on net income " sing the aging-of-accounts receivable method. you estimate that total uncollectible accounts are $3,000. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance on $1,100. The amount of the adjusting entry should be A) $4,900 B) $3,800 C) $2,700 D) $1,100 20. On the maturity date, the payee of a note will: A) debit Cash, credit Note Receivable and Interest Revenue B) debit Cash, credit Note Payable and Interest Expense C) debit Cash, credit Note Receivable and Interest Expense D) debit Cash, credit Note Payable and Interest Revenue

Answer 1

17)
	The adjusting entry would be
	Date	Account Title	Debit	Credit
		Uneraned Service Revenue ($4800/12*2)	$        800
		Service Revenue		$        800
		( to record service revenue perfomed during the year)
		Correct Option: C
18)	Correct Option: B
	It will reduce the net income.
19)	Adjusting entry to be made
	=$3800-1100
	=$2700
	Correct Option :C
20)	The correct entry would be
	Date	Account Title	Debit	Credit
		CAsh	XXXX
		Interest Revenue		XXX
		Note Receivables		XXX
	Correct Option :A