Blake Co Provided $5,000 of Consulting Services to Simmons Co

question 7

Multiple Choice

Blake Co. provided $5,000 of consulting services to Simmons Co. for which they have not yet received payment. When Blake billed Simmons for the consulting services, Blake mistakenly journalized and posted the transaction as a $5,000 debit to Accounts Receivable and a $5,000 credit to Unearned Consulting Fees. The entry Blake needs to make to correct this error is

• A) Debit Unearned Consulting Fees and credit Consulting Fees Earned for $5,000
• B) Debit Unearned Consulting Fees and credit Accounts Receivable for $5,000
• C) Debit Consulting Fees Earned and credit Accounts Receivable for $5,000
• D) Debit Consulting Fees Earned and credit Unearned Consulting Fees for $5,000

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Definitions:

Efficiency

The degree to which resources are used optimally to achieve a desired outcome, minimizing waste and maximizing output.

Equality

The situation where individuals have the same rights, opportunities, and status.

Society's Resources

The total available assets, both natural and man-made, that are available for use by a society.

Marginal Benefit

The supplementary pleasure or utility a consumer experiences when an additional unit of a good or service is consumed.