Spafford Services, Inc. provides services to clients. On May 1, a client prepaid Spafford Services $81,000 for 6-months services in advance. Spafford Services' general journal entry to record this transaction will include a:
A. Credit to Cash for $81,000.
B. Credit to Management Fees Earned for $81,000.
C. Credit to Unearned Management Fees for $81,000.
D. Debit to Unearned Management Fees for $81,000.
E. Debit to Management Fees Earned for $81,000.
Answer: C
You might also like to view...
On a multistep income statement, other revenues and expenses are a component of income from operations
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. Upward appeals rely on higher management while personal appeals rely on friendship. 2. Consultation references the support of others as a reason for someone to agree to a request as a tactic for influencing others. 3. Compliance is the best reaction to an influence tactic. 4. Commitment occurs when people are enthusiastic and fully in agreement with an action or decision and are motivated to put in the extra effort to successfully reach a goal.
With regard to time buckets, the difference between an integrated MRP-JIT system and an only-MRP system is that ______.
A. there is no difference; both systems use time buckets of a week or longer B. there is no difference; both systems use bucketless planning C. the MRP system uses time buckets; the integrated MRP-JIT system uses a bucketless system D. the MRP system uses a bucketless system; the integrated MRP-JIT system uses time buckets
Limited liability is a major advantage of a partnership as compared to a corporation
a. True b. False Indicate whether the statement is true or false