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On August 1, 2008, Magic Carpet Entertainment Received $4,800 for Services

Question 17

Multiple Choice

On August 1, 2008, Magic Carpet Entertainment received $4,800 for services to be performed evenly over the next twelve months. The adjusting entry on December 31, 2008, would include a:


A) debit to Cash for $4,800.
B) credit to Service Revenue for $4,800.
C) debit to Unearned Service Revenue for $2,800.
D) debit to Unearned Service Revenue for $2,000.

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