Question

On Saturday, December 31, the company's owner provided ten hours of service to a customer. The company bills $100 per hour for services provided on weekends. Payment has not yet been received. The owner did not stop in the office on Saturday; as such, on December 31, the services were unbilled and unrecorded.Complete the necessary adjusting entry by selecting the account names and dollar amounts from the drop-down menus.Date Account Title Debit CreditDec. 31 Accounts Receivable Accumulated Depreciation Cash Depreciation Expense Equipment Equipment Expense Rent Revenue Salaries Expense Salaries Payable Service RevenueSupplies Supplies Expenses Unearned Rent Revenue Accounts Receivable Accumulated Depreciation Cash Depreciation Expense Equipment Equipment Expense Rent Revenue Salaries Expense Salaries Payable Service Revenue Supplies Supplies Expenses Unearned Rent Revenue

Answer 1

Answer and Explanation:

The adjusting entry is as follows

Account receivable Dr $1,000  ($100 per hour × 10 hours)

          To Service revenue $1,000

(Being service provided is recorded)

For recording this we debited the account receivable as it increased the assets and credited the service revenue as it also increased the service revenue so that the correct recording and posting could be done