On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 200,000, over the next 8 months. SQU paid 35% of the amount on August 31, 2020 and will pay the remaining amount during January 2021. If Zuhoor Muscat Company completed their services on December 31, 2020, the adjusting entry recorded on that date would include: O a. Decrease in Unearned Revenue for RO 200,000. O b. None of the options are correct. Oc. Increase in Service Revenue for RO 130,000. O d. Increase in Service Revenue for RO 70,000. e. Increase in Cash for RO 70,000.
On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 200,000, over the next 8 months. SQU paid 35% of the amount on August 31, 2020 and will pay the remaining amount during January 2021. If Zuhoor Muscat Company completed their services on December 31, 2020, the adjusting entry recorded on that date would include: O a. Decrease in Unearned Revenue for RO 200,000. O b. None of the options are correct. Oc. Increase in Service Revenue for RO 130,000. O d. Increase in Service Revenue for RO 70,000. e. Increase in Cash for RO 70,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Time left 0:46:59
On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 200,000, over the
next 8 months. SQU paid 35% of the amount on August 31, 2020 and will pay the remaining amount during
January 2021. If Zuhoor Muscat Company completed their services on December 31, 2020, the adjusting
entry recorded on that date would include:
O a.
Decrease in Unearned Revenue for RO 200,000.
O b. None of the options are correct.
C. Increase in Service Revenue for RO 130,000.
d. Increase in Service Revenue for RO 70,000.
O e.
Increase in Cash for RO 70,000.
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Transcribed Image Text:Time left 0:46:59
On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 200,000, over the
next 8 months. SQU paid 35% of the amount on August 31, 2020 and will pay the remaining amount during
January 2021. If Zuhoor Muscat Company completed their services on December 31, 2020, the adjusting
entry recorded on that date would include:
O a.
Decrease in Unearned Revenue for RO 200,000.
O b. None of the options are correct.
C. Increase in Service Revenue for RO 130,000.
d. Increase in Service Revenue for RO 70,000.
O e.
Increase in Cash for RO 70,000.
NEXT PAGE
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