Accounting homework help

Betty Carson has performed $500 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must Betty make?

(a) Debit Cash and credit Unearned Revenue.

(b) Debit Accounts Receivable and credit Unearned Revenue.

(c) Debit Accounts Receivable and credit Service Revenue.

(d) Debit Unearned Revenue and credit Service Revenue.

I know that this is asking of much but all I need is just this one answer and I'll be done with my quiz, so if anyone wouldn't mind helping please do just for this one question.
Anonymous User
Anonymous User
Asked Jul 18, 2011
It should be 'C.' No cash was received and the work is completed. Accounts Receivable are an asset account and a debit will increase it's value. Revenue accounts increase owners equity so it has a credit balance.
Rob
Answered Jul 18, 2011
Accounting is a vast subject with many and varied sub topics. There are financial statements such as Balance sheet, Income Statements, Journal Entries, Statement of Cash Flows, Retained Earnings Statement and Trial Balance which form the basics of any accounting. You can Get Accounting Homework Help on making any of the above statements from highly experienced tutors.
jazzalbart
Answered Sep 11, 2012
Edited Sep 11, 2012
Debit Accounts Receivable and credit Service Revenue

The work *HAS* been performed, and therefore needs to recorded on the books as (Earned) Service Revenue, (assuming that this company uses the accrual basis of accounting).

It's a little confusing about the debit to Accounts Receivable, in a way. The question says that the company has not billed the client as of the end of the accounting period. The thing is that the adjusting entry kind of implicitly says that the company *IS* going to bill the client soon, so therefore the amount will become an account receivable.
danielloh
Answered Nov 13, 2013

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