a-company-received-3000-for-a-30-hour-service-contract-by-the-end-of-the-month-1

Question

A company received $3,000 for a 30-hour service contract. By the end of the month, 18 hours of service were provided. How much revenue should be recognized, and what is the adjusting journal entry?

Accepted Answer

Recognize $1,800; Debit Unearned Revenue $1,800; Credit Revenue $1,800

Answer

Recognize $1,200; Debit Unearned Revenue $1,200; Credit Revenue $1,200

Answer

Recognize $1,800; Debit Unearned Revenue $1,200; Credit Revenue $1,800

Answer

Recognize $1,800; Debit Revenue $1,800; Credit Unearned Revenue $1,200

A company received \$3,000 for a 30-hour service contract. By the end of the month, 18 hours of service were provided. How much revenue should be recognized, and what is the adjusting journal entry?