A company received $5,000 for 100 one−year subscriptions on July 1. The journal entry to record this cash receipt would include a ________. The company uses a liability account for revenue received in advance. A. debit to Note Payable for $5,000 B. credit to Accounts Payable for $5,000 C. credit to Unearned Revenue for $5,000 D. debit to Prepaid Expenses for $5,000
A company received $5,000 for 100 one−year subscriptions on July 1. The journal entry to record this cash receipt would include a ________. The company uses a liability account for revenue received in advance. A. debit to Note Payable for $5,000 B. credit to Accounts Payable for $5,000 C. credit to Unearned Revenue for $5,000 D. debit to Prepaid Expenses for $5,000
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter18: Acquiring Capital For Growth And Development
Section: Chapter Questions
Problem 1AP
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A company received $5,000 for 100 one−year subscriptions on July 1. The journal entry to record this cash receipt would include a ________. The company uses a liability account for revenue received in advance.
debit to Note Payable for $5,000
credit to Accounts Payable for $5,000
credit to Unearned Revenue for $5,000
debit to Prepaid Expenses for $5,000
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