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Nick Co. is a firm that provides legal services. On September 15, a client pays...

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Accounting

Nick Co. is a firm that provides legal services. On September 15, a client pays $2,000 upfront to Nick Co. for legal services to be performed over the next month. Nick Co. will start providing legal services immediately. What is the adjusting journal entry at the end of September?
Dr. Unearned Revenue 1,000 Cr. Service Revenue 1,000
Dr. Cash 1,000 Cr. Service Revenue 1,000
Dr. Accounts Receivable 1,000 Cr. Service Revenue 1,000
Dr. Service Revenue 1,000 Cr. Unearned Revenue 1,000
Hint: This transaction is an adjusting journal entry that comes from Ch.3.
Review the Ch.3 slides in the Deferred
Revenue/Unearned section to see an example.
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