On August 1 of the Current Year, Jamie Simmons Received

question 117

Multiple Choice

On August 1 of the current year, Jamie Simmons received $5,400 for legal services to be performed evenly throughout the next six months. The adjusting entry on December 31 of the current year would include a:

• A) credit to Unearned Service Revenue of $4,500.
• B) debit to Unearned Service Revenue of $900.
• C) debit to Service Revenue of $900.
• D) credit to Service Revenue of $4,500.

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Definitions:

Ration Coupons

Certificates or vouchers that allow the holder to purchase a certain amount of scarce goods, often used during shortages to ensure fair distribution.

Legally Determined Market Prices

Prices set by law or regulation rather than by market forces of supply and demand.

Ticket Scalping

The practice of buying tickets to an event and reselling them at a higher price, often to profit from high demand and limited supply.

Equilibrium

A state of balance in a market or system where opposing forces cancel each other out and no changes occur over time.