194. Mike Conway is a lawyer who requires that his clients pay him in egai services rendered. Mike routinely credits Service Revenue when his clients pay him in advance. In June Mike collected €20,000 in advance fees and completed 75% of the work related to these fees. What adjusting entry is required by Mike's firm at the end of June? a. Unearned Service Revenue 15,000 Service Revenue 15,000 b. Unearned Service Revenue 5,000 Service Revenue 5,000 C. Cash 20,000 20,000 Service Revenue d. Service Revenue 5,000 Unearned Service Revenue 5,000

194. Mike Conway is a lawyer who requires that his clients pay him in egai services rendered. Mike routinely credits Service Revenue when his clients pay him in advance. In June Mike collected €20,000 in advance fees and completed 75% of the work related to these fees. What adjusting entry is required by Mike's firm at the end of June? a. Unearned Service Revenue 15,000 Service Revenue 15,000 b. Unearned Service Revenue 5,000 Service Revenue 5,000 C. Cash 20,000 20,000 Service Revenue d. Service Revenue 5,000 Unearned Service Revenue 5,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

Question

194. Mike Conway is a lawyer who requires that his clients pay him in advance of legal
services rendered. Mike routinely credits Service Revenue when his clients pay him in
advance. In June Mike collected €20,000 in advance fees and completed 75% of the work
related to these fees. What adjusting entry is required by Mike's firm at the end of June?
a. Unearned Service Revenue
15,000
Service Revenue
15,000
b. Unearned Service Revenue
5,000
Service Revenue
5,000
C. Cash
20,000
20,000
Service Revenue
d. Service Revenue
5,000
Unearned Service Revenue
5,000

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