If Throughout an Accounting Period the Fees for Legal Services

question 30

Multiple Choice

If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees,the end-of-period adjusting entry to record the portion of these fees that has been earned is:

• A) Debit Cash and credit Legal Fees Earned.
• B) Debit Cash and credit Unearned Legal Fees.
• C) Debit Unearned Legal Fees and credit Legal Fees Earned.
• D) Debit Legal Fees Earned and credit Unearned Legal Fees.
• E) Some other entry.

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