A consulting firm receives $30,000 advance payment on September 1 for six months of consulting services that they recorded as a liability. By December 31, what is the adjusting entry regarding unearned revenue?

Question

Answer

Debit Unearned Revenue $20,000; Credit Consulting Revenue $20,000

Answer

Debit Unearned Revenue $30,000; Credit Consulting Revenue $30,000

Answer

Debit Cash $10,000; Credit Unearned Revenue $10,000

Answer

Debit Consulting Revenue $20,000; Credit Unearned Revenue $20,000

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A consulting firm receives $30,000 advance payment on September 1 for six months...

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