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\(\quad\)\(\$ 900\)

---

Definitions:

Ratifies

The act of formally approving or confirming a decision or agreement, making it officially valid.

Valid

Legally sound, effective, and binding.

Contract for Sale

A legally binding agreement where one party agrees to sell and another agrees to buy goods or property under specified terms and conditions.

Writing

A method of communication or expression through the use of symbols, characters, or scripts in a tangible form.