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

question 54

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

Determine the impact of closing entries on the Income Summary account.

Understand the preparation of final statements from the worksheet post adjustments and closings.

Recognize the sequence of steps in the accounting cycle.

Understand the purpose and preparation process of a post-closing trial balance.

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Definitions:

Sales Account

An account in the general ledger that records the sales of goods or services.

Uncollectible Accounts

Accounts receivable that a business does not expect to collect due to customers being unable or unwilling to pay.

Estimated

An approximation or informed guess of a value, amount, or size based on available data or trends but not derived from exact calculations.

Carrying Amount

The net value of an asset or liability recorded on the balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.