The accounting records for Social Event Planning Services include the following

Question

The accounting records for Social Event Planning Services include the following select unadjusted balances on December? 31, 2018: Salaries? Expense, $6,000; Service? Revenue: $ 19 comma 000 $19,000?; Unearned? Revenue, $400; Supplies? Expense, $600; Rent? Expense, $300; Depreciation Expense long dash —?Equipment, ?$200. During? December, the company worked with a new client and provided event planning services for an upcoming event. It will receive the full amount of $ 1 comma 500 $1,500 when the event is completed in January 2019. As of the end of December? 2018, it performed one minus ?third of the services covered by the contract. The company made the accrual adjustments. The balance of Service? Revenue, as shown on the adjusted trial? balance, should be a? ________. A. debit balance of $ 1 comma 500 $1,500 B. credit balance of $ 19 comma 500 $19,500 C. credit balance of $ 19 comma 000 $19,000 D. debit balance of $ 20 comma 500 $20,500

Explanation / Answer

Balance of Service? Revenue = 19000+(1500/3) = $19500 credit balance

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