A transaction has been recorded in the general journal of Deluty Company as follows:
$$\begin{array} { | l | r | r | }
\hline \text { Unearned Reveruse } & 600 & \
\hline \text { Consulting Reverue } & & 600 \
\hline
\end{array}$$
Which of the following describes the effect of this transaction on the company's financial statements?

Question

A transaction has been recorded in the general journal of Deluty Company as follows:
$$\begin{array} { | l | r | r | } 
\hline \text { Unearned Reveruse } & 600 & \
\hline \text { Consulting Reverue } & & 600 \
\hline
\end{array}$$
Which of the following describes the effect of this transaction on the company's financial statements?

Quizplus · Accepted Answer

This transaction decreases liabilities (Unearned Revenue) and increases revenue (Consulting Revenue), which in turn increases Stockholders' Equity.

A Transaction Has Been Recorded in the General Journal of Deluty