Question

The trial balance for Windsor, Inc. appears as follows:

Windsor, Inc.
Trial Balance
December 31, 2017
Cash $230
Accounts Receivable 407
Prepaid Insurance 64
Supplies 140
Equipment 3120
Accumulated Depreciation, Equipment $470
Accounts Payable 300
Common Stock 940
Retained Earnings 1090
Service Revenue 2331
Salaries and Wages Expense 780
Rent Expense 390 0
$5131 $5131

If service for $137 had been performed but not billed, the adjusting entry to record this would include a:

Answer 1

Step-by-step explanation:

The adjusting entry is shown below:

Accounts receivable A/c Dr $137

To Service revenue $137

(Being service is performed)

When service is performed but not billed yet, we debit the accounts receivable account and credit the service revenue account as the amount is not yet received from the client so we do not debit the service revenue account.