Your Best Advisors, a Service Company, Uses Reversing Entries $$\begin{array} { | c | r | r | } \hline \text { Utilities Expense } & 900 & \\\hline \text { Accounts Payable } & & 900 \\\hline\end{array}$$

question 99

Multiple Choice

Your Best Advisors, a service company, uses reversing entries. On March 31, 2014, they prepared the following adjusting entry to accrue Utilities Expense: $$\begin{array} { | c | r | r | } \hline \text { Utilities Expense } & 900 & \\\hline \text { Accounts Payable } & & 900 \\\hline\end{array}$$ Which of the following entries is the correct reversing entry to be prepared on April 1, 2014?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 900 & \\
• \hline \text { Utilities Expense } & & 900 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Utilities Expense } & 900 & \\
• \hline \text { Income Summary } & & 900 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 900 & \\
• \hline \text { Utilities Expense } & & 900 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Utilities Expense } & 900 & \\
• \hline \text { Accounts Receivable } & & 900 \\
• \hline
• \end{array}\]

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