AAA Consulting Services collected $6,000 cash for services to be provided in the future. Which of the following shows how recognizing the cash receipt will affect the company’s ledger accounts
AAA Consulting Services collected $6,000 cash for services to be provided in the future. Which of the following shows how recognizing the cash receipt will affect the company’s ledger accounts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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AAA Consulting Services collected $6,000 cash for services to be provided in the future. Which of the following shows how recognizing the cash receipt will affect the company’s ledger accounts

Transcribed Image Text:O
Cash + Prepaid Rent
Cash
6,000
Assets
Cash + Prepaid Rent
6,000
Cash
+
Assets
Assets
Prepaid Rent
Assets
Prepaid Rent
= Liabilities
Unearned
Revenue
6,000
II
=
=
=
=
=
Liabilities
Unearned
Revenue
6,000
Liabilities
Unearned
Revenue
Liabilities
Unearned
Revenue
(6,000)
+
Stockholders' Equity
Retained
Earnings
(6,000)
Common
Stock
Stockholders' Equity
Retained
Earnings
Common
Stock
Stockholders' Equity
Retained
Common
Stock
Stockholders' Equity
Retained
Common
Stock
Earnings
6,000
+
Earnings
6,000
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