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On September 1, Tree Company Began a Contract to Provide

Question 17

Multiple Choice

On September 1, Tree Company began a contract to provide services to Willow Company for six months, with the total $21,600 payment to be made at the end of the six-month period. Equal services are provided each month. The firm uses the account Fees Receivable to reflect amounts due but not yet billed.
What proper adjusting entry would Tree Company make on December 31, the end of the accounting period (no previous adjustment has been made) ?


A) On September 1, Tree Company began a contract to provide services to Willow Company for six months, with the total $21,600 payment to be made at the end of the six-month period. Equal services are provided each month. The firm uses the account Fees Receivable to reflect amounts due but not yet billed. What proper adjusting entry would Tree Company make on December 31, the end of the accounting period (no previous adjustment has been made) ? A) B) C) D)
B) On September 1, Tree Company began a contract to provide services to Willow Company for six months, with the total $21,600 payment to be made at the end of the six-month period. Equal services are provided each month. The firm uses the account Fees Receivable to reflect amounts due but not yet billed. What proper adjusting entry would Tree Company make on December 31, the end of the accounting period (no previous adjustment has been made) ? A) B) C) D)
C) On September 1, Tree Company began a contract to provide services to Willow Company for six months, with the total $21,600 payment to be made at the end of the six-month period. Equal services are provided each month. The firm uses the account Fees Receivable to reflect amounts due but not yet billed. What proper adjusting entry would Tree Company make on December 31, the end of the accounting period (no previous adjustment has been made) ? A) B) C) D)
D) On September 1, Tree Company began a contract to provide services to Willow Company for six months, with the total $21,600 payment to be made at the end of the six-month period. Equal services are provided each month. The firm uses the account Fees Receivable to reflect amounts due but not yet billed. What proper adjusting entry would Tree Company make on December 31, the end of the accounting period (no previous adjustment has been made) ? A) B) C) D)

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