On September 30, Jordan Consulting received $12,000 from Hank's Hardware in exchange for services performed. Upon receipt of this payment, Jordan recorded a $12,000 reduction in unearned service revenue and a $12,000 increase in cash. Did Jordan make the proper accounting entries? Why or why not? A : Yes, Jordan made the proper accounting entries. In order to keep the accounting equation in balance, the firm had to reduce its combined liabilities and stockholders' equity by the same amount as it increased its assets. B : No, Jordan did not make the proper accounting entries. Although the firm was correct to increase cash by $12,000, it should have recorded a $12,000 increase in revenue rather than a $12,000 decrease in unearned service revenue. C : No, Jordan did not make the proper accounting entries. Although the firm was correct to increase cash by $12,000, it should have recorded a $12,000 decrease in revenue rather than a $12,000 decrease in unearned service revenue. D : No, Jordan did not make the proper accounting entries. Although the firm was correct to decrease unearned service revenue by $12,000, it should have recorded a $12,000 decrease in cash instead of a $12,000 increase in cash.

The law firm of furlan and benson accumulates costs associated with individual cases, using a job order cost system. the following transactions occurred during july: jul. 3 charged 175 hours of professional (lawyer) time to the obsidian co. breech of contract suit to prepare for the trial, at a rate of $150 per hour. 10 reimbursed travel costs to employees for depositions related to the obsidian case, $12,500. 14 charged 260 hours of professional time for the obsidian trial at a rate of $185 per hour. 18 received invoice from consultants wadsley and harden for $30,000 for expert testimony related to the obsidian trial. 27 applied office overhead at a rate of $62 per professional hour charged to the obsidian case. 31 paid administrative and support salaries of $28,500 for the month. 31 used office supplies for the month, $4,000. 31 paid professional salaries of $74,350 for the month. 31 billed obsidian $172,500 for successful defense of the case. required: a. provide the journal entries for each of these transactions. refer to the chart of accounts for exact wording of account titles. b. how much office overhead is over- or underapplied? c. determine the gross profit on the obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.