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

question 140

Multiple Choice

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

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid, recognized on the books before they are paid for.

Accrued Revenues

Revenues earned during a specific accounting period but not yet received in cash or recorded in the books.

Adjusting Entries

Journal entries made in an accounting period to allocate revenues and expenses to the periods in which they actually occurred.

Accounting Adjustments

Entries made in the accounts to correct transactions, record unrecorded items, or bring accounts up to date at period end.