On August 1 of the current year, Smith Company received $6,000 for legal services to be performed evenly throughout the next six months. The adjustment on December 31 of the current year would include:

Question

Quizplus · Accepted Answer

Smith Company received $6,000 for services to be performed over six months, which means $1,000 of revenue is earned each month. By December 31, five months have passed, so $5,000 of the revenue has been earned, requiring an increase to Service Revenue of $5,000.

On August 1 of the Current Year, Smith Company Received