Asked by
Kayla Melgarejo
on Oct 16, 2024
Verified
A law firm collected $1,800 in advance for work to be performed in three months.Which of the following general journal entries will the firm make to record this transaction?
A) Debit Accounts Receivable,$1,800; credit Unearned Legal Fees Revenue,$1,800.
B) Debit Cash,$1,800; credit Unearned Legal Fees Revenue,$1,800.
C) Debit Legal Fees Revenue,$1,800; credit Accounts Receivable,$1,800.
D) Debit Accounts Receivable,$1,800; credit Legal Fees Revenue,$1,800.
E) Debit Cash,$1,800; credit Accounts Receivable,$1,800.
Unearned Legal Fees Revenue
Revenue recognized for legal services not yet provided; it is recorded as a liability until the service is delivered.
General Journal
A foundational accounting record where transactions are recorded in chronological order before being posted to specific accounts in the general ledger.
- Apply the principles of debit and credit in documenting transactions accurately.
- Acquire knowledge about the influence of prepaid and unearned items on financial statements.
Verified Answer
LJ
Learning Objectives
- Apply the principles of debit and credit in documenting transactions accurately.
- Acquire knowledge about the influence of prepaid and unearned items on financial statements.