Question

a law firm collected $1,900 in advance for work to be performed in three months. which of the following general journal entries will the firm make to record this transaction? multiple choice debit accounts receivable, $1,900; credit unearned revenue, $1,900. debit cash, $1,900; credit unearned revenue, $1,900. debit services revenue, $1,900; credit accounts receivable, $1,900. debit accounts receivable, $1,900; credit services revenue, $1,900. debit cash, $1,900; credit accounts receivable, $1,900.

Answer 1

The correct general journal entry to record the transaction would be: debit cash, $1,900; credit unearned revenue, $1,900.

Step-by-step explanation:

The correct general journal entry to record the transaction would be: debit cash, $1,900; credit unearned revenue, $1,900.

When the law firm collects $1,900 in advance for work to be performed in three months, it should debit the cash account to increase its balance by $1,900. At the same time, the firm should credit the unearned revenue account to record the liability for the services that are yet to be rendered.

Therefore, the correct general journal entry would be: debit cash, $1,900; credit unearned revenue, $1,900.