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 Unearned Legal Service Revenue
B)Debit Unearned Legal Service Revenue and credit Legal Service Revenue.
C)Debit Cash 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 adjusting entry involves debiting Unearned Legal Service Revenue to decrease the liability and crediting Legal Service Revenue to recognize the revenue earned during the period.

If Throughout an Accounting Period the Fees for Legal Services