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Problem 1: Mavis Enterprises received $28,000 from a customer on October 31, 2020 for work beginning immediately and to be completed by February 28, 2021. Mavis credited the cash to Unearned Revenue. As of December 31, 2020, 45% of the work had been completed. What adjusting entry must Mavis make at February 28, 2021? Option 1: Debit: Revenue, $12,600; Credit: Unearned Revenue, $12,600 Option 2: Debit: Unearned Revenue, $12,600; Credit: Revenue, $12,600 Option 3: Debit: Unearned Revenue, $15,400; Credit: Revenue, $15,400 Option 4: Debit: Cash, $28,000; Credit: Unearned Revenue, $28,000
Financial Statement Analysis and Preparation
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