The Laramie Company operates a consulting practice. New clients are required to pay the firm in two transactions. First, clients must pay $200 before receiving consulting services. Second, clients must pay $1,800 once the consulting firm finishes providing services to the client. How does The Laramie Company account for the second transaction?
a. Debit the Cash account for $200 and credit the Unearned Revenue account for $200.
b. Debit the Cash account for $2,000 and credit the Service Revenue account for $2,000.
c. Debit the Cash account for $200 and credit the Prepaid Service account for $200.
d. Debit the Cash account for $1,800, debit the Unearned Revenue account for $200, and credit the Service Revenue account for $2,000.
e. Debit the Cash account for $200, debit the Prepaid Service account for $1,800, and credit the Service Revenue account for $2,000.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The Laramie Company operates a consulting practice. New clients are required to pay the firm in two transactions. First, clients must pay ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Advise Florence and her team on how they can convince the staff using john kotter's theory to lead change
Answers (1)
frederick taylor believed that management and labor should cooperate and work together to meet goals. he was the first to suggest that the primary functions or managers should be planning and training.
Answers (1)
Cash donations to public charities are limited to % of a taxpayer's AGI. Donations of capital gain property to public charities are generally limited to % of a taxpayer's AGI.
Answers (1)
What personnel records would you suggest for a small retailer with three employees?
Answers (1)
Which of the following statements concerning business processes is false? Select one: a. A process has inputs. b. A process has outputs. c. A process has activities that can be measured. d. A process creates value. e.
Answers (1)
New Questions in Business
If the findings and the results are not presented properly, the research completed was a waste of time and money. True False
Answers (1)
Coronado Shoes Fool Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case.
Answers (1)
On Jan 1, 2011, P. T. Scope Company purchased a computer system for $3,240. The company expects to use the system for 3 years. The asset has no salvage value. The book value of the system at Dec 31, 2012 is
Answers (1)
What minimum amount of body weight loss (lbs) is shown to improve physical capabilities and quality of life?
Answers (1)
Bank A has an increase in deposits of $20 million dollars and all bank reserve requirements are 10%. Bank A loans out the full amount of the deposit increase that is allowed. This amount winds up deposited in Bank B.
Answers (1)