Question

4 of 40 3 complete) This Test: 40 pts On February 1, Charlie Winslow Lamaracted to provide $4200 of legal services for the next three months and received 1.200 cash from the dientasuming Winslow records deferred reving the atmalle treatment, what would be the adjusting entry recorded on February 28? Date Accounts and Explanation Debit Cid ОА. 2.800 Service Revenue Uneamed Revenue 2.800 OB . 4200 Cash Service Revenue 4.203 Ос. 14 Unearned Revenue Service Re 1400 200 Canh Unoamed Herrenuo 4200 Click to select your awe 2 .

Answer 1

solution Calculation of unearned revenues - Service revenue permonth. $ 4200 3 month $ Uneased revenue $ 1400 3monthis-I monta $1400 x 2 months -$2800 option A is correct. Journal entry; Debit credit Service revenue Bed 2800 Unearned revenue 2800 (to recood service revenue) being liability account Increases, hence credited. Unearned revenue