Annie's Catering received $800 cash from a customer for catering services to be provided next month. Given the choices below, determine the general journal entry that Annie's Catering will make to record the cash receipt. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.

A.

Accounts Receivable800 
Catering Revenue 800

B.
Cash800 
Catering Revenue 800

C.
Cash800 
Unearned Catering Revenue 800

D.
Cash800 
Accounts Receivable 800

E.
Unearned Catering Revenue800 
Catering Revenue 800


Answer: C

Business

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