Use This Information to Answer the Following Question If Services Totaling $125 Had Been Performed but Not Billed,the

question 219

Multiple Choice

Use this information to answer the following question.
The trial balance for Tsung Corporation appears as follows:
$\begin{array}{c}\text {Tsung Corporation}\\\text {Trial Balance}\\\text {December 31, 2010}\\\begin{array}{|l|r|r|}\hline \text { Cash } & \$ 200 \\\text { Accounts Receivable } & 500 \\\text { Prepaid Insurance } & 50 \\\text { Supplies } & 150 \\\text { Office Equipment } & 400\\\text { Accumulated Depreciation-Office Equipment } & & \$ 200 \\\text { Accounts Payable } & & 300 \\\text { Common Stock } & & 600 \\\text { Service Revenue Earned } &&500 \\\text { Salaries Expense } & 100 \\\text { Rent Expense } &200 \\& \$ 1.600 & \$ 1.600\\\hline\end{array}\end{array}$

If services totaling $125 had been performed but not billed,the adjusting entry to record this would include a

• A) credit to Unearned Service Revenue for $125.
• B) debit to Service Revenue Earned for $125.
• C) credit to Service Revenue Earned for $125.
• D) credit to Service Revenue Earned for $625.

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Definitions:

Scatter Plot

A graphical representation using dots to show the relationship between two quantitative variables, with each axis representing one of the variables.

Y-intercept

The point where a line or curve crosses the y-axis of a graph, indicating the value of the dependent variable when all independent variables are zero.

Regression Equation

A statistical method for estimating the relationships among variables, often used for predicting the value of a dependent variable based on the values of one or more independent variables.

Linear Regression

A statistical method for modeling the relationship between a dependent variable and one or more independent variables using a linear equation.