Elliott Smith is a lawyer who requires that his clients pay him in advance of legal services rendered. Elliott routinely credits Service Revenue when his clients pay him in advance. In June Elliott collected $15,000 in advance fees and completed 70% of the work related to these fees. What adjusting entry is required by Elliott's firm at the end of June?

A) Unearned Service Revenue ... 10,500, Service Revenue ... 10,500

B) Unearned Service Revenue ... 4,500, Service Revenue ... 4,500

C) Cash ... 15,000, Service Revenue ... 15,000

D) Service Revenue ... 4,500, Unearned Service Revenue ... 4,500

Question

Mathematics

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2 October, 11:02

Elliott Smith is a lawyer who requires that his clients pay him in advance of legal services rendered. Elliott routinely credits Service Revenue when his clients pay him in advance. In June Elliott collected $15,000 in advance fees and completed 70% of the work related to these fees. What adjusting entry is required by Elliott's firm at the end of June?

A) Unearned Service Revenue ... 10,500, Service Revenue ... 10,500

B) Unearned Service Revenue ... 4,500, Service Revenue ... 4,500

C) Cash ... 15,000, Service Revenue ... 15,000

D) Service Revenue ... 4,500, Unearned Service Revenue ... 4,500

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Izabelle Stein · Answer 1

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Elliott Smith is a lawyer who requires that his clients pay him in advance of legal services rendered. Elliott routinely credits Service Revenue when his clients pay him in advance. In June Elliott collected $15,000 in advance fees and completed 70% of the work related to these fees.