ABC Catering Received $800 Cash from a Customer for Catering

question 117

Multiple Choice

ABC Catering received $800 cash from a customer for catering services to be provided next month. Given the choices below, determine the general journal entry that ABC Catering will make to record the cash receipt. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.

• A) \(\begin{array} { | l | r | r | }
• \hline \text { Unearned Catering Revenue } & 800 & \\
• \hline \text { Catering Revenue } & & 800 \\
• \hline
• \end{array}\)
• B) \(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 800 & \\
• \hline \text { Accourts Receivable } & & 800 \\
• \hline
• \end{array}\)
• C) \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 800 & \\
• \hline \text { Unearned Catering Revenue } & & 800 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 800 \\
• \hline \text { Catering Reverue } & & 800 \\
• \hline
• \end{array}\)
• E) \(\begin{array} { | l | r | r | }
• \hline \text { Accourts Receivable } & 800 \\
• \hline \text { Catering Reverue } & & 800 \\
• \hline
• \end{array}\)

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