If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Services Revenue, the end-of-period adjusting entry to record the portion of these fees that has been earned is
A) Debit Cash and credit Legal Service Revenue
B) Debit Cash and credit Unearned Legal Service Revenue
C) Debit Unearned Legal Service Revenue and credit Legal Service Revenue
D) Debit Legal Service Revenue and credit Unearned Legal Service Revenue
E) Some other entry

Question

Quizplus · Accepted Answer

The correct adjusting entry to record the portion of the fees that has been earned is to debit Unearned Legal Service Revenue and credit Legal Service Revenue. This moves the amount from a liability account (unearned revenue) to an income account (revenue), reflecting that the service has now been provided.

If Throughout an Accounting Period the Fees for Legal Services