Pattie's Event Planning Service Has Just Prepared the Unadjusted Trial

question 87

Multiple Choice

Pattie's Event Planning Service has just prepared the unadjusted trial balance,which shows the following balances:
Salary expense: Debit $8,000
Service revenues: Credit $3,000
Interest expense: 0
Late in this month,she began working with a new client,providing event planning services for an upcoming event.When the event is complete,in the following month,she will collect the full amount of $900 from her client.As of the end of this month,she has rendered one-third of the services covered by the contract.She makes accrual adjustments monthly.The final adjusted balance of Service revenues,as shown on the adjusted trial balance,should be a:

• A) debit balance of $300.
• B) credit balance of $3,900.
• C) debit balance of $3,300.
• D) credit balance of $3,300.

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Definitions:

Rationing Coupons

Tickets or coupons issued by the government or an organization, allowing the holder to purchase a fixed amount of a scarce commodity or service.

Misallocation

An inefficient distribution of resources in an economy, leading to outcomes where resources are not used in the best possible ways according to the needs and wants of society.

Queuing System

A queuing system is a model used to analyze and manage the process by which customers wait for service or goods, focusing on efficiency and fairness.

Opportunity Cost

The value of the next best alternative forgone as the result of making a decision.