Beetles Ltd Recorded the Following Journal Entry on 2 March $$\begin{array} { | l | l | l | } \hline \text { Cash } & 6000 & \\\hline \text { Unearned revenue } & & 6000 \\\hline\end{array}$$

question 84

Multiple Choice

Beetles Ltd recorded the following journal entry on 2 March 2016:
$$\begin{array} { | l | l | l | } \hline \text { Cash } & 6000 & \\\hline \text { Unearned revenue } & & 6000 \\\hline\end{array}$$
From the journal entry above,identify the transaction on 2 March 2016.

• A) Beetles sold goods for $6000 cash.
• B) Beetles received $6000 for services to be performed in a later period.
• C) Beetles purchased goods worth $6000 and signed a one-year bill for the same.
• D) Beetles paid $6000 for services to be received at a later date.

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Definitions:

Capital Balances

The amount of capital that remains in a partnership or firm after liabilities have been accounted for, representing the owners' equity.

Partnership Assets

Assets owned by a partnership, representing the investment and contributions of the partners.

Net Income

The income a company retains following the deduction of all expenses and taxes from its total revenue.

Interest Allowances

Financial incentives or reductions in interest payments designed to encourage borrowing or to alleviate the burden of interest costs.