Use this information to answer the following question. The trial balance for Tsung Corporation appears as follows:
$\begin{array}{c}
\text {Tsung Corporation}\
\text {Trial Balance}\
\text {December 31, 2010}\
\begin{array}{|l|r|r|}
\hline\text { Cash } & \$ 200 \
\text { Accounts Receivable } & 500 \
\text { Prepaid Insurance } & 50 \
\text { Supplies } & 150 \
\text { Office Equipment } & 400\
\text { Accumulated Depreciation-Office Equipment } & & \$ 200 \
\text { Accounts Payable } & & 300 \
\text { Common Stock } & &600 \
\text { Service Revenue Earned } & & 500\
\text { Salaries Expense } &100 \
\text { Rent Expense } & 200 & \
&\underline{\$ 1,600} &\underline{\$ 1,600} \
\hline
\end{array}
\end{array}$
If services totaling $125 had been performed but not billed,the adjusting entry to record this would include a

Question

Use this information to answer the following question. The trial balance for Tsung Corporation appears as follows:
$\begin{array}{c}
\text {Tsung Corporation}\
\text {Trial Balance}\
\text {December 31, 2010}\
\begin{array}{|l|r|r|}
\hline\text { Cash } & \$ 200 \
\text { Accounts Receivable } & 500 \
\text { Prepaid Insurance } & 50 \
\text { Supplies } & 150 \
\text { Office Equipment } & 400\
\text { Accumulated Depreciation-Office Equipment } & & \$ 200 \
\text { Accounts Payable } & & 300 \
\text { Common Stock } & &600 \
\text { Service Revenue Earned } &  &  500\
\text { Salaries Expense } &100 \
\text { Rent Expense } & 200 & \
&\underline{\$ 1,600} &\underline{\$ 1,600}  \
\hline
\end{array}
\end{array}$
 If services totaling $125 had been performed but not billed,the adjusting entry to record this would include a

Quizplus · Accepted Answer

The adjusting entry for services performed but not billed involves recognizing the revenue earned. Therefore, a credit to Service Revenue Earned for $125 is needed to reflect the earned revenue.

Use This Information to Answer the Following Question If Services Totaling $125 Had Been Performed but Not Billed,the