A Company Accepted $6,000 on August 1 for Services to Be

question 135

Multiple Choice

A company accepted $6,000 on August 1 for services to be performed evenly over the next 12 months. The adjusting entry on December 31 would include a:

• A)debit to unearned revenue $2,500.
• B)debit to service revenue for $2,500.
• C)debit to unearned revenue for $3,500.
• D)credit to service revenue for $3,500.

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Definitions:

Institutional Power

The authority and influence possessed by an organization, enabling it to control or direct societal or organizational outcomes.

Market Share

The proportion of an industry's sales that is earned by a particular company over a specified time period.

John Schnatter

The founder of Papa John's Pizza, an American pizza restaurant franchise.

Expanding Internationally

The process by which a business extends its operations and market reach beyond its home country, entering new geographic markets.