On October 1 of the Current Year, Wood Services Received

question 126

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 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.

---

Definitions:

Laos

A country in Southeast Asia known for its mountainous terrain, French colonial architecture, Buddhist monasteries, and the Mekong River.

Salvador Allende

Salvador Allende was a Chilean physician, socialist politician, and the first Marxist to become president of a country through open elections.

Nixon Administration

The presidency of Richard Nixon, the 37th President of the United States, which lasted from 1969 to 1974.

Economic Aid

Financial assistance provided by one country or international organization to another to support its economic development and welfare.