Pelican Limited and Waters Limited Formed a Joint Operation and Share

Pelican Limited and Waters Limited formed a joint operation and share equally in the output of the joint operation. The joint operation paid a management fee of $60 000 to Pelican Limited during the current period. The cost to Pelican Limited of supplying the management service was $42 000. Pelican Limited records the costs of supplying the management services as which of the following entries?

A) DR Cost of supplying services $42 000 CR Cash $42 000
B) DR Cost of supplying services $18 000 CR Cash $18 000
C) DR Cash $ 42 000 CR Costs of supplying services $ 42 000
D) DR Fee revenue $ 60 000 CR Cash $ 60 000