Jackson Tucker Has a Large Consulting Practice

question 82

Multiple Choice

Jackson Tucker has a large consulting practice.New clients are required to pay one-half of the consulting fees up front.The balance is paid at the conclusion of the consultation.Dillion Paiva a new client paid $15000 on August 1 and another $15000 on completiton of the engagement on Sept 1.Use the following tabular analysis to record the receipt of $15000 on Sept 1

• A)Increase Cash $15000 and decrease Unearned Revenue $15000.
• B)Increase Cash $15000 decrease Unearned Revenue $15000 and increase Service Revenue $30000.
• C)Increase Service Revenue $15000 and decrease Unearned Revenue $15000.
• D)Increase Cash $15000 decrease Unearned Revenue $15000 and increase Service Revenue $15000.

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Definitions:

Estimated Line of Cost Behavior

A projection or forecast of how costs will change with different levels of activity.