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On September 1, Knowledgeable Company Began a Contract to Provide

Question 18

Multiple Choice

On September 1, Knowledgeable Company began a contract to provide services to Guidance Required Company for six months, with the total $64,800 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 Knowledgeable Company make on December 31, the end of the accounting period (no previous adjustment has been made) ?


A) On September 1, Knowledgeable Company began a contract to provide services to Guidance Required Company for six months, with the total $64,800 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 Knowledgeable 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, Knowledgeable Company began a contract to provide services to Guidance Required Company for six months, with the total $64,800 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 Knowledgeable 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, Knowledgeable Company began a contract to provide services to Guidance Required Company for six months, with the total $64,800 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 Knowledgeable 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, Knowledgeable Company began a contract to provide services to Guidance Required Company for six months, with the total $64,800 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 Knowledgeable 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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