Question

multiple select question
select all that apply
$1,000 of cash was received in advance of performing services. by the end of the period, $300 had not yet been earned. (the unearned revenue account was increased at the time of the initial cash receipt.) demonstrate the required adjusting journal entry by selecting from the choices below.
unearned revenue would be debited for $300.
accounts receivable would be debited for $700.
service revenue would be credited for $300.
service revenue would be credited for $700.
unearned revenue would be debited for $700.
need help? review these concept resources.

Explanation:

Step1: Calculate earned revenue

$\$1000 - \$300 = \$700$

Step2: Identify adjusting entry logic

When revenue is earned, we decrease the liability (Unearned Revenue) with a debit, and recognize revenue with a credit.

Step3: Match to correct options

Debit Unearned Revenue for $\$700$, Credit Service Revenue for $\$700$

Answer:

• Unearned revenue would be debited for $700.
• Service revenue would be credited for $700.