Use This Information Pertaining to the Alvino Corporation to Answer $\$ 200$

question 164

Multiple Choice

Use this information pertaining to the Alvino Corporation to answer the following question. 1. The corporation's Store Supplies account showed a beginning debit balance of $\$ 200$ and supplies purchased of $\$ 800$ . There were $\$ 300$ of supplies on hand at year end.
2. Depreciation on a building is estimated to be $\$ 5,000$ .
3. A one-year insurance policy was purchased for $\$ 2,000$ . Three months have passed since the purchase.
4. Acciued interest on a note receivable amounted to $\$ 100$ .
5. The company received a $\$ 3,600$ advance payment during the year on services to be performed. By the end of the year, one-fourth of the services had been performed.
The adjusting entry to record the amount of service revenue earned during the accounting period is

• A)Service Revenue\(\quad\)\(\quad\)2,700
• Unearned Revenue\(\quad\)2,700
• B)Unearned Revenue\(\quad\)\(\quad\)2,700
• Service Revenue\(\quad\)\(\quad\)2,700
• C)Service Revenue\(\quad\)\(\quad\)900
• Unearned Revenue\(\quad\)\(\quad\)900
• D)Unearned Revenue \(\quad \$ 900\)
• Service Revenue\(\quad\)\(\$ 900\)

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Definitions:

Community Colleges

Educational institutions that provide higher education and lower-level tertiary education, granting certificates, diplomas, and associate degrees.

Service Order

Also called a repair order (RO). This is a legal contract between the customer and the shop regarding the services to be performed. It contains pertinent customer information, vehicle information, and a record of services and repairs.

Entry-Level Technician

A beginning technician capable of making simple vehicle repairs, whose typical assignments include basic inspections and maintenance services.

Accredits Automotive

The process by which automotive programs and schools are certified as meeting certain educational and training standards.