In January, the All Irie Resort books and accepts a cash payment for $32,000 for

Q: In January, the All Irie Resort books and accepts a cash payment for $32,000 for

The correct answer is : Cash and a credit to Unearned Revenue. Note : Since Cash is an asset , inflow of cash would result in an increase in asset and hence, cash is debited. Unearned Revenue is credited because the service is yet to be perfomed.

ID: 2391872 • Letter: I

Question

In January, the All Irie Resort books and accepts a cash payment for $32,000 for vacation services to be provided during spring break in March. The journal entry recorded in January will include a debit to:

Accounts Receivable and a credit to Service Revenue.

Accounts Payable and a credit to Service Revenue.

Prepaid Expenses and a credit to Service Revenue.

Cash and a credit to Unearned Revenue.

Accounts Receivable and a credit to Service Revenue.

Accounts Payable and a credit to Service Revenue.

Prepaid Expenses and a credit to Service Revenue.

Cash and a credit to Unearned Revenue.

Explanation / Answer

The correct answer is :

Cash and a credit to Unearned Revenue.

Note : Since Cash is an asset , inflow of cash would result in an increase in asset and hence, cash is debited. Unearned Revenue is credited because the service is yet to be perfomed.

Navigate

In January, X Company, a merchandiser, purchased inventory on account. The accou

In January, the accountant for a corporation, is feeling pressure to complete th

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.

In January, the All Irie Resort books and accepts a cash payment for $32,000 for

Question

Explanation / Answer

Related Questions

Navigate