Trimble Graphic Design Receives $1,500 from a Client Billed in a Previous

question 108

Multiple Choice

Trimble Graphic Design receives $1,500 from a client billed in a previous month for services provided. Which of the following general journal entries will Trimble Graphic Design make to record this transaction?

• A) \[\begin{array} { | l | r | l | }
• \hline \text { Accounts Receivable } & 1,500 & \\
• \hline \text { Unearned Design Revenue } & & 1,500 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | l | }
• \hline \text { Cash } & 1,500 & \\
• \hline \text { Unearned Design Revenue } & & 1,500 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,500 & \\
• \hline \text { Design Revenue } & & 1,500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 1,500 & \\
• \hline \text { Cash } & & 1,500 \\
• \hline
• \end{array}\]
• E) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,500 & \\
• \hline \text { Accounts Receivable } & & 1,500 \\
• \hline
• \end{array}\]

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Definitions:

Financial Statement

A written record that conveys the business activities and financial performance of a company, commonly including balance sheet, income statement, and cash flow statement.

Dividends Declared

This is the amount of earnings a company's board of directors decides to distribute to shareholders in the form of dividends.

Income Tax Expense

The amount of expense that a company reflects on its income statement due to federal, state, and foreign income taxes.

Income Statement

A report detailing a corporation's income and expenditures within a certain timeframe, leading to either a profit or a deficit.