On July 1, a client paid an advance payment (retainer) of $5,000 to cover future legal services. During the period, the company completed $3,500 of the agreed-on services for the client. Based on the information provided, Make the initial journal entry for advance payment: a) $5000 b) $3500 c) $1500 DR a) service revenue b) accounts receivable с) cash d) unearned service revenue a) $5000 b) $3500 c) $1500 CR a) service revenue b) accounts receivable c) cash d) unearned service revenue Make December 31 adjusting journal entry: a) $5000 b) $3500 c) $1500 DR a) service revenue b) accounts receivable с) cash d) unearned service revenue a) $5000 b) $3500 CR a) service revenue b) accounts receivable c) cash c) $1500 d) unearned service revenue

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On July 1, a client paid an advance payment (retainer) of $5,000
to cover future legal services. During the period, the company
completed $3,500 of the agreed-on services for the client. Based
on the information provided,
Make the initial journal entry for advance payment:
a) $5000
b) $3500
c) $1500
DR
a) service revenue
b) accounts receivable
с) cash
d) unearned service revenue
a) $5000
b) $3500
c) $1500
CR
a) service revenue
b) accounts receivable
с) cash
d) unearned service revenue
Make December 31 adjusting journal entry:
a) $5000
b) $3500
DR
a) service revenue
b) accounts receivable
c) cash
c) $1500
d) unearned service revenue
a) $5000
b) $3500
c) $1500
CR
a) service revenue
b) accounts receivable
с) cash
d) unearned service revenue
Transcribed Image Text:On July 1, a client paid an advance payment (retainer) of $5,000 to cover future legal services. During the period, the company completed $3,500 of the agreed-on services for the client. Based on the information provided, Make the initial journal entry for advance payment: a) $5000 b) $3500 c) $1500 DR a) service revenue b) accounts receivable с) cash d) unearned service revenue a) $5000 b) $3500 c) $1500 CR a) service revenue b) accounts receivable с) cash d) unearned service revenue Make December 31 adjusting journal entry: a) $5000 b) $3500 DR a) service revenue b) accounts receivable c) cash c) $1500 d) unearned service revenue a) $5000 b) $3500 c) $1500 CR a) service revenue b) accounts receivable с) cash d) unearned service revenue
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