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Problem 1: On Dec 12,2020, Dwight, Accounts receivable boolkeeper received $1.000 from a customer as an advance payment for professional accounting work to be done. The payment was credited to Accounting Revenue. Thirty percent of the work was performed in December 2020, with the rest to be done in January 2021, at which time the customer will be billed. The required adjusting entry at December 31,2020(year end) is
Option 1: Dr Accounting Revenue $300,Cr Unearned Revenue $300.Option 2: Dr Accounting Revenue $700, Cr Unearned Revenue $700Option 3: Dr Unearned Revenue $700, Cr Accounting Revenue $700.Option 4: Dr Unearned Revenue $300, Cr Accounting Revenue $300.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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