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$1,000 of cash was received in advance of performing services. By the end of the period, $300 had not yet been earned. (The Uneared revenue account was increased at the time of the initial cash receipt) Demonstrate the required adjusting journal entry by selecting from the choices below. (Check all that apply.) a. Service revenue would be credited for $300. b. Unearned revenue would be debited for $300. c. Unearned revenue would be debited for $700. d. Accounts receivable would be debited for $700. e. Service revenue would be credited for $700.

Respuesta :

Answer:

c. Unearned revenue would be debited for $700

e. Service revenue would be credited for $700.

Explanation:

The journal entries are shown below:

Cash A/c Dr $1,000

     To Unearned revenue A/c $1,000

(Being the advance cash is received)

Now the adjusting entry is

Unearned revenue A/c Dr $700

      To Service revenue A/c $700

(Being the unearned revenue is recorded)

The computation is shown below:

= $1,000 - $300

= $700