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:

Question

Business

Quinn Black

6 June, 17:04

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:

+3

Answers (1)

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Tigger · Answer 1

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.