An Adjusting Entry Recorded as a Debit to Unearned Service

question 146

Short Answer

An adjusting entry recorded as a debit to Unearned Service Revenue and a credit to Service Revenue.

---

Definitions:

Common Stock

Type of equity security that represents ownership in a corporation, with rights to vote on corporate matters and receive dividends.

Par Value

A nominal value assigned to shares of stock in a company's charter, not necessarily reflecting market value.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often divided into share capital and retained earnings.