Pattie's Event Planning Service Has Just Prepared the Unadjusted Trial

question 46

Multiple Choice

Pattie's Event Planning Service has just prepared the unadjusted trial balance, which shows the following balances: Salary expense: Debit $8 000 Service revenues: Credit $3 000 Interest expense: 0
Late in this month, she began working with a new client, providing event planning services for an upcoming event. When the event is complete, in the following month, she will collect the full amount of $900 from her client. As of the end of this month, she has rendered one- third of the services covered by the contract. She makes accrual adjustments monthly. The final adjusted balance of Service revenues, as shown on the adjusted trial balance, should be a:

• A)credit balance of $3 300.
• B)debit balance of $300.
• C)debit balance of $3 300.
• D)credit balance of $3 900.

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Definitions:

Standard

A level of quality or attainment.

Unfavorable Direct Materials Price Variance

A financial metric indicating that the actual cost of direct materials was higher than the planned or standard cost, leading to a decrease in profitability.

Standard Price

Standard price is a pre-determined cost assigned to materials, labor, and overheads to measure variances in budgeting and accounting.

Direct Materials

Raw materials directly used in the production of goods, easily traceable to the final product.