Question

knowledge check 01 a company is in its first month of operations. the company performed $2,000 worth of services on january 28. the company expects to receive payment on february 15. what adjusting entry would be made at the end of january? post the adjusting entry for the scenario provided. note: if no entry is required for a transaction/event, select
o journal entry required\ in the first account field. view transaction list journal entry worksheet 1 record the adjusting entry for services provided on account during january. note: enter debits before credits. date general journal debit credit january 31

Explanation:

Step1: Identify the accounting principle

Revenue should be recognized when earned. Since services are provided in January, revenue is earned in January even if payment is received later.

Step2: Determine the accounts involved

Accounts Receivable is debited as the company has a right to receive payment in the future. Service Revenue is credited as revenue has been earned.

Step3: Record the amounts

The amount of services provided is $2,000, so both Accounts Receivable and Service Revenue are recorded at $2,000.

Date	General Journal	Debit	Credit
	Service Revenue		$2,000

Answer:

Date	General Journal	Debit	Credit
	Service Revenue		$2,000