HH Consulting & Design Provided $800 of Consulting Work and $100

question 1

Short Answer

HH Consulting & Design provided $800 of consulting work and $100 of design work to the same client. It billed the client for the total amount and is expecting to collect from the customer next month. Which of the following general journal entries will HH Consulting & Design make to record this transaction?
A)
$\begin{array}{|l|r|r|}\hline \text { Cash } & 900 & \\\hline \text { Consulting Revenue } & & 800 \\\hline \text { Design Revenue } & & 100 \\\hline\end{array}$
B)
$\begin{array}{|l|r|r|}\hline \text { Consulting Revenue } & 800 & \\\hline \text { Design Revenue } & 100 & \\\hline \text { Cash } & & 900 \\\hline\end{array}$
C)
$\begin{array}{|l|r|r|}\hline \text { Accounts Payable } & 800 & \\\hline \text { Design Revenue } & & 100 \\\hline \text { Consulting Revenue } & & 800 \\\hline\end{array}$
D)
$\begin{array}{|l|r|r|}\hline \text { Accounts Receivable } & 900 & \\\hline \text { Consulting Revenue } & & 800 \\\hline \text { Design Revenue } & & 100 \\\hline\end{array}$
E)
$\begin{array}{|l|r|r|}\hline \text { Design Revenue } & 100 & \\\hline \text { Consulting Revenue } & 800 & \\\hline \text { Accounts Receivable } & & 900 \\\hline\end{array}$

• A)
• \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 900 & \\
• \hline \text { Consulting Revenue } & & 800 \\
• \hline \text { Design Revenue } & & 100 \\
• \hline
• \end{array}\)
• B)
• \(\begin{array}{|l|r|r|}
• \hline \text { Consulting Revenue } & 800 & \\
• \hline \text { Design Revenue } & 100 & \\
• \hline \text { Cash } & & 900 \\
• \hline
• \end{array}\)
• C)
• \(\begin{array}{|l|r|r|}
• \hline \text { Accounts Payable } & 800 & \\
• \hline \text { Design Revenue } & & 100 \\
• \hline \text { Consulting Revenue } & & 800 \\
• \hline
• \end{array}\)
• D)
• \(\begin{array}{|l|r|r|}
• \hline \text { Accounts Receivable } & 900 & \\
• \hline \text { Consulting Revenue } & & 800 \\
• \hline \text { Design Revenue } & & 100 \\
• \hline
• \end{array}\)
• E)
• \(\begin{array}{|l|r|r|}
• \hline \text { Design Revenue } & 100 & \\
• \hline \text { Consulting Revenue } & 800 & \\
• \hline \text { Accounts Receivable } & & 900 \\
• \hline
• \end{array}\)

---

Definitions:

Work in Process

Inventory that includes goods that are in the process of being manufactured but are not yet complete.

Finished Goods Inventory

Manufactured goods that are complete and ready for sale.

Lower of Cost

A principle typically applied in the valuation of inventory and financial assets, stating to record the asset at the lower of its historical cost or current market value.

Net Realizable Value

The estimated selling price in the ordinary course of business, minus the estimated costs of completion and the necessary costs to make the sale.