On September 1,Patterson Maintenance Company Contracted to Provide Monthly Maintenance

question 154

Multiple Choice

On September 1,Patterson Maintenance Company contracted to provide monthly maintenance services for the next five months at a rate of $2,700 per month.The client paid Patterson $13,500 on September 1.Assuming Patterson records deferred revenues using the alternative treatment,what would be the entry on September 1?

• A) Debit Cash and credit Unearned Revenue for $13,500
• B) No entry is needed until the services are performed
• C) Debit Cash and credit Service Revenue for $13,500
• D) Debit Prepaid Maintenance and credit Cash for $13,500

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Definitions:

Mons Pubis

The rounded mass of fatty tissue lying over the joint of the pubic bones, especially prominent in women.

Labia Minora

The inner folds of the vulva, situated within the labia majora, playing a protective role for the vaginal and urethral openings.

Labia Majora

The larger, outer folds of skin that enclose and protect the external female genital organs.

Vestibule

An anatomical space or chamber, such as the central part of the labyrinth of the inner ear, which plays a role in balance.