Chapter 4, Problem 4.1MC

Jefferson, CPAs provides accounting services for a client at a flat contract rate of $10,000 a month. The terms of the contract include a required payment on the 15th day of each month for the prior month’s accounting services. Assuming Jefferson, CPAs posts journal entries each month end, what is (are) the journal entry (entries) posted on December 31?

a. Cash	10,000
Service Revenue		10,000
b. Cash	10,000
Accounts Receivable		10,000
c. Accounts Receivable	5,000
Cash	10,000
Service Revenue		15,000
d. Cash	10,000
Accounts Receivable		10,000
Accounts Receivable	10,000
Service Revenue		10,000