On Dec 12, 2020, Ivory Coast, CGA, Received $ 5,000

question 43

Multiple Choice

On Dec 12, 2020, Ivory Coast, CGA, received $ 5,000 from a customer as an advance payment for accounting work to be done. The payment was credited to Service Revenue. Thirty percent of the work was performed in December 2020, with the rest to be done in January 2021, at which time the customer will be billed. The required adjusting entry at December 31, 2020 (year end) is

• A) Dr. Unearned Revenue $ 1,500, Cr. Service Revenue $ 1,500.
• B) Dr. Service Revenue $ 1,500, Cr. Unearned Revenue $ 1,500.
• C) Dr. Service Revenue $ 3,500, Cr. Unearned Revenue $ 3,500.
• D) Dr. Unearned Revenue $ 3,500, Cr. Service Revenue $ 3,500.

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Definitions:

Time Constraints

Limitations or restrictions on the amount of time available to complete a task or project.

Frame of Reference

The context, perspective, or background from which a situation is observed and interpreted.

Indirect Approach

A communication method where the main point or message is not revealed immediately but rather introduced gradually in the communication.

Credibility

The quality of being trusted and believed in, often based on a reputation for honesty and integrity.