Golddigger Services Inc

question 110

Multiple Choice

Golddigger Services Inc. provides services to clients. On May 1, a client prepaid Golddigger Services $60,000 for 6-months services in advance. Golddigger Services' general journal entry to record this transaction will include a:

• A) Debit to Management Fees Earned for $60,000.
• B) Credit to Management Fees Earned for $60,000.
• C) Credit to Unearned Management Fees for $60,000.
• D) Credit to Cash for $60,000.
• E) Debit to Unearned Management Fees for $60,000.