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On December 1, 2015, Carrie's Day Care Receives $1500 in Advance

Question 103

Multiple Choice

On December 1, 2015, Carrie's Day Care receives $1500 in advance for an agreement to care for Susan's children for the months of December, January, and February. Carrie's Day Care will make an adjusting entry on December 31, 2015 to:


A) credit Revenue for $1500.
B) debit Unearned Revenue for $500.
C) credit Revenue for $1000.
D) credit Prepaid Revenue for $1000.

Correct Answer:

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