Sebastian Belle Has Performed $2,000 of CPA Services for a Client

question 201

Multiple Choice

Sebastian Belle has performed $2,000 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must Sebastian make?

• A) Debit Cash and credit Unearned Service Revenue
• B) Debit Accounts Receivable and credit Unearned Service Revenue
• C) Debit Accounts Receivable and credit Service Revenue
• D) Debit Unearned Service Revenue and credit Service Revenue

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Definitions:

Legal Capital

The minimum amount of capital that a company must maintain as required by law, often set to protect creditors.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument as stated by the issuer.

Legal Significance

Refers to the importance or implications of something within the realm of the law, often determining how legal documents, decisions, or actions are interpreted and enforced.

SEC

The Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry.