On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 220,000 over the next 8 months. SQU paid 45% 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. Increase in total assets for RO 121,000. O b. Decrease in Unearned Revenue for RO 96,800. С. Increase in Service Revenue for RO 99,000. O d. Increase in Cash for RO 220,000. е. None of the options are correct.

On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 220,000 over the next 8 months. SQU paid 45% 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. Increase in total assets for RO 121,000. O b. Decrease in Unearned Revenue for RO 96,800. С. Increase in Service Revenue for RO 99,000. O d. Increase in Cash for RO 220,000. е. None of the options are correct.

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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