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Afina-wow [57]
3 years ago
15

A law firm collected $3,600 for work to be performed in the following month. Which of the following general journal entries will

the firm make to record this transaction?
a. Debit Accounts Receivable, $3,600; credit Unearned Legal Fees Revenue, $3,600.b. Debit Cash, $3,600; credit Unearned Legal Fees Revenue, $3,600.c. Debit Legal Fees Revenue, $3,600; credit Accounts Receivable, $3,600.d. Debit Accounts Receivable, $3,600; credit Legal Fees Revenue, $3,600.e. Debit Cash, $3,600; credit Accounts Receivable, $3,600.
Business
1 answer:
defon3 years ago
6 0

Answer:

b. Debit Cash, $3,600; credit Unearned Legal Fees Revenue, $3,600

Explanation:

The journal entry to record the given transaction is as follows

Cash Dr $3,600

     To Unearned legal fees revenue $3,600

(Being the collection is recorded)

Since the collection is made so we debited the cash account and credited the unearned legal fees revenue so that the correct posting could be made

Hence, the correct option is b.  

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4 0
3 years ago
LF Corporation, a manufacturer of Mexican foods, contracted in 2014 to purchase 1,500 pounds of a spice mixture at $5.00 per pou
kramer

Answer:

(b) a loss of $750

Explanation:

Given;

Amount of spice mixture to be purchased = 1500 pounds

Price of spice mixture in 2014 = $5.00 per pound

Changed price of sugar mixture = $4.50 per pound

Now,

The amount to be received on the day of contract in 2014

= Amount of spice mixture to be purchased × Price of spice mixture in 2014

= 1500 × $5.00

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and,

The amount to be received in 2015

= Amount of spice mixture to be purchased × Price of spice mixture in 2015

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The difference in Expected amount and the amount to be received

= $7500 - $6750

= $750

Since the amount to be received is less than the expected amount on the day of contract

Therefore,

a loss will be recognized

Hence,

the correct answer is option (b) a loss of $750

5 0
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