A law firm collected $2900 in advance for work to be performed in three months. Which of the following general journal entries will the firm make to record this transaction?
A. Debit Legal Fees Revenue, $2900; credit Accounts Receivable, $2900.
B. Debit Cash, $2900; credit Accounts Receivable, $2900.
C. Debit Cash, $2900; credit Unearned Legal Fees Revenue, $2900.
D. Debit Accounts Receivable, $2900; credit Legal Fees Revenue, $2900.
E. Debit Accounts Receivable, $2900; credit Unearned Legal Fees Revenue, $2900.
Answer: C
You might also like to view...
The residual dividend policy implies that investors prefer to have the firm retain and reinvest earnings rather than pay them out in dividends if the rate of return the firm can earn on reinvested earnings:
A. is less than its cost of retained earnings. B. is less than its weighted average cost of capital (WACC). C. exceeds its cost of debt. D. exceeds the rate investors, on average, can earn themselves on other investments of comparable risk. E. is less than the discount rate offered by the firm on its dividend reinvestment plan (DRIP).
Motives include knowledge and positive or negative feelings about an object.
Answer the following statement true (T) or false (F)
Referring to Gerald's Produce, what is Gerald's ending cash balance expected to be in March?
A) $15,400 B) $16,700 C) $17,000 D) $17,700 E) $18,200
Physical security must prevent misuse of the physical infrastructure that leads to the misuse or damage of the protected information
Indicate whether the statement is true or false.