On October 1 of the Current Year, Wood Services Received

question 103

Multiple Choice

On October 1 of the current year, Wood Services received $15,000 for services to be performed evenly over the next 12 months. Wood Services initially recorded the $15,000 as unearned service revenue. The adjusting entry on December 31 of the current year will include a:

• A)debit to service revenue for $11,250.
• B)debit to service revenue for $3,750.
• C)debit to unearned service revenue for $3,750.
• D)debit to unearned service revenue for $11,250.

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Definitions:

Insanity Defense

The insanity defense is a legal argument used by defendants, claiming that due to mental illness, they should not be held fully responsible for their actions under criminal law.

Mental State

The condition of one's mind or emotions, impacting behavior and decision-making.

Wrongful Nature

Describes actions or behaviors that are morally or legally incorrect.

Sarbanes-Oxley Act

U.S. federal law enacted to protect investors from fraudulent accounting activities by corporations. It mandates strict reforms to enhance financial disclosures and prevent accounting fraud.