Realtors, Inc. paid Professional Painting Company $75,000 in advance for painting services that will be performed in both, the present fiscal period and the following fiscal period, Realtor, Inc. should record the entry as: a. Debit Cash; credit Painting Revenue. b. Debit Cash; credit Accounts Payable. c. Debit Cash; credit Unearned Painting Revenue. d. Debit Cash; credit Other Income. e. Debit Painting Revenue; credit Unearned Painting Revenue.
Realtors, Inc. paid Professional Painting Company $75,000 in advance for painting services that will be performed in both, the present fiscal period and the following fiscal period, Realtor, Inc. should record the entry as: a. Debit Cash; credit Painting Revenue. b. Debit Cash; credit Accounts Payable. c. Debit Cash; credit Unearned Painting Revenue. d. Debit Cash; credit Other Income. e. Debit Painting Revenue; credit Unearned Painting Revenue.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Realtors, Inc. paid Professional Painting Company $75,000 in advance for painting services that will
be performed in both, the present fiscal period and the following fiscal period, Realtor, Inc. should record
the entry as:
a. Debit Cash; credit Painting Revenue.
b. Debit Cash; credit Accounts Payable.
c. Debit Cash; credit Unearned Painting Revenue.
d. Debit Cash; credit Other Income.
e. Debit Painting Revenue; credit Unearned Painting Revenue.
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