On August 1 of the Current Year, Magic Carpet Entertainment

question 103

Multiple Choice

On August 1 of the current year, Magic Carpet Entertainment received $4,800 for services to be performed evenly over the next twelve months. The adjusting entry on December 31, 2008, would include a:

• A)debit to Cash for $4,800.
• B)credit to Service Revenue for $4,800.
• C)debit to Unearned Service Revenue for $2,000.
• D)debit to Unearned Service Revenue for $2,800.

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Definitions:

Blockage

The obstruction of a passage or pathway, such as in blood vessels or digestive tract, causing functional disruption.

Stage II Pressure Ulcer

An open wound on the skin, typically caused by prolonged pressure, that involves both the epidermis and the dermis but is not yet deep.

Infection

The invasion and multiplication of microorganisms such as bacteria, viruses, and parasites that are not normally present within the body.

Purulent Drainage

A type of thick, often yellowish fluid that is produced at the site of an infection, indicating the presence of pus.