Adjusting Entry for Unbilled Services: Debit Accounts Receivable

Question 4 1 / 1 pts Tom See has performed $4,000 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must Tom make? Correct! Debit Accounts Receivable and credit Service Revenue Debit Cash and credit Unearned Service Revenue Debit Unearned Service Revenue and credit Service Revenue Debit Accounts Receivable and credit Unearned Service Revenue Question 5 1 / 1 pts The cost of a depreciable asset less accumulated depreciation reflects the book value of the asset. Correct! . True False Question 6 1 / 1 pts Holiday Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on November 1 in the amount of $80,000 with annual interest of 6%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest? a. Interest Expense . 800 Interest Payable .. 800 b. Interest Expense .. 1,200 Interest Payable 1.200 C. Interest Expense ..... 800 Cash .. 800 Interest Expense . 008 Notes Payable.. 800 Correct! a d $80,000 x .06 x 2/12 = $800 interest payable (Prin. x Int. rate x Fraction of yr. accrued)