If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees,the end-of-period adjusting entry to record the portion of these fees that has been earned is:
A) Debit Cash and credit Legal Fees Earned.
B) Debit Cash and credit Unearned Legal Fees.
C) Debit Unearned Legal Fees and credit Legal Fees Earned.
D) Debit Legal Fees Earned and credit Unearned Legal Fees.
E) Some other entry.

Question

Quizplus · Accepted Answer

The adjusting entry involves debiting Unearned Legal Fees to decrease the liability and crediting Legal Fees Earned to recognize the revenue that has been earned during the period.

If Throughout an Accounting Period the Fees for Legal Services