Jones Company received $2,200 in cash during March for Service Revenue for a job that will be completed in May. This job would be completed before the end of the year when the finance's are prepared. Since it is short lived and will be earned during this accounting period, Jones Company decided to record it as revenue instead of a liability at the time the cash was received in March. The journal entry to record this transaction when we received the cash in March would be: O O Date Date Date Date Cash Accounts Unearned Service Revenue Cash Accounts Service Revenue Accounts Service Revenue Cash Accounts Unearned Service Revenue Cash I DON'T KNOW YET Debit Credit 2,200 2,200 Debit Credit 2,200 Debit 2,200 2,200 Debit Credit 2,200 2,200 Credit 2,200

Jones Company received $2,200 in cash during March for Service Revenue for a job that will be completed in May. This job would be completed before the end of the year when the finance's are prepared. Since it is short lived and will be earned during this accounting period, Jones Company decided to record it as revenue instead of a liability at the time the cash was received in March. The journal entry to record this transaction when we received the cash in March would be: O O Date Date Date Date Cash Accounts Unearned Service Revenue Cash Accounts Service Revenue Accounts Service Revenue Cash Accounts Unearned Service Revenue Cash I DON'T KNOW YET Debit Credit 2,200 2,200 Debit Credit 2,200 Debit 2,200 2,200 Debit Credit 2,200 2,200 Credit 2,200

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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