Asked by Daniel Gallups on Apr 24, 2024
Verified
A company provided $12,000 of consulting services and was immediately paid in cash by the customer.Identify the journal entry below that properly records this transaction.
A)
B)
C)
D)
E)
Consulting Services
Professional services provided by experts in a particular field to advise businesses or individuals in specific areas, such as management, technology, or finance.
Cash Payment
A financial transaction where an exchange of money occurs to settle a debt or purchase goods or services.
- Understand how to record transactions using general journal entries.
Verified Answer
JN
Jordan NewsomMay 02, 2024
Final Answer :
B
Explanation :
The journal entry for this transaction is a debit to Cash and a credit to Service Revenue. Option B shows this correctly with Cash being debited for $12,000 and Service Revenue being credited for the same amount. Options A, C, D, and E do not have the correct accounts or amounts.
Learning Objectives
- Understand how to record transactions using general journal entries.
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