Annie's Catering received $1200 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 Receivable | 1200? | |
| Catering Revenue | 1200? |
B.
| Cash | 1200? | |
| Catering Revenue | 1200? |
C.
| Cash | 1200? | |
| Unearned Catering Revenue | 1200? |
D.
| Unearned Catering Revenue | 1200? | |
| Catering Revenue | 1200? |
E.
| Cash | 1200? | |
| Accounts Receivable | 1200? |
Answer: C
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