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Problem 1: Hartmann Co. provided $42,000 worth of maintenance services to a customer, Simmons Co., the last week of December 2020. Hartmann did not invoice the customer until January 3, 2021. What adjusting entry must Hartmann make at December 31, 2020? Option 1: No entry needed on December 31, 2020 Option 2: Debit: Unearned Revenue, $42,000; Credit: Revenue, $42,000 Option 3: Debit: Revenue, $42,000; Credit: Unearned Revenue, $42,000 Option 4: Debit: Revenue, $42,000; Credit: Accounts Receivable, $42,000 Option 5: Debit: Accounts Receivable, $42,000; Credit: Revenue, $42,000
Financial Statement Analysis and Preparation
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