A Company Provided $12,000 of Consulting Services on Account B) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 12,000 & \\\hline \text { Consulting services revenus } & & 12,000 \\\hline\end{array}$$

question 26

Multiple Choice

A company provided $12,000 of consulting services on account. The customer promises payment in 30 days. Identify the journal entry below that properly records this transaction.

• A) \[\begin{array} { | l | r | l | }
• \hline \text { Accounts payable } & 12,000 & \\
• \hline \text { Consulting services revenue } & & 12,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 12,000 & \\
• \hline \text { Consulting services revenus } & & 12,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts receivable } & 12,000 & \\
• \hline \text { Cash } & & 12,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | l | }
• \hline \text { Accounts Receivable } & 12,000 & \\
• \hline \text { Consulting services revenue } & & 12,000 \\
• \hline
• \end{array}\]
• E) \[\begin{array} { | l | r | l | }
• \hline \text { Consulting services revenue } & 12,000 & \\
• \hline \text { Cash } & & 12,000 \\
• \hline
• \end{array}\]

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Definitions:

Payrolls

The total amount of money a company pays to its employees for a set period of time, including wages, salaries, bonuses, and deductions.

Fully Funded Pension Rights

A pension plan that has enough assets to meet all its obligations to retirees and current employees.

Pension Expense

The cost recognized by an employer for contributions to pension plans on behalf of its employees for the current period.

Salaries Expense

An account that represents the total amount paid to employees for services rendered during a specific period, usually before any deductions.