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Business, 06.03.2020 23:29 ashlee7877
Johnson Bookkeeping prepares financial statements for Joes Ice Cream, Inc. for a fee. On April 1, 2006, Johnson Bookkeeping received $12,000 for one year's service in advance and recorded the following journal entry:
4/1/06 Cash 12,000 Fees Revenue 12,000.
Please note that the above journal entry is incorrect as it credited Fees Revenue instead of Unearned Fees Revenue.
1. The December 31, 2006 adjusting entry is:
A. debit Unearned Fees Revenue and credit Fees Revenue, $3,000
B. debit Fees Revenue and credit Unearned Fees Revenue, $3,000
C. debit Fees Revenue and credit Unearned Fees Revenue, $9,000
D. debit Unearned Fees Revenue and credit Fees Revenue, $9,000
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Johnson Bookkeeping prepares financial statements for Joes Ice Cream, Inc. for a fee. On April 1, 20...
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