On December 1, Simpson Marketing Company received $3,900 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned revenue. The adjusting entry for the year ended December 31 would include: Multiple Choice a credit to Services Revenue for $2,600. a debit to Unearned Revenue for $1,950. a debit to Services Revenue for $2,600. a debit to Services Revenue for $3,900. a credit to Unearned Revenue for $1,300.

On December 1, Simpson Marketing Company received $3,900 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned revenue. The adjusting entry for the year ended December 31 would include: Multiple Choice a credit to Services Revenue for $2,600. a debit to Unearned Revenue for $1,950. a debit to Services Revenue for $2,600. a debit to Services Revenue for $3,900. a credit to Unearned Revenue for $1,300.

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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On December 1 Simpson marketing company received $6900 from a customer for a two month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned fees the adjustment entry for the year and then December 31 would include: