10.ABC Co. received $1,000 in December for services it will perform in the following month. ABC uses the accrual basis of accounting. In December ABC debited Cash for $1,000. What will be the other account involved in the December accounting entry prepared by ABC (and what type of account is it)?Accounts Receivable (asset) Prepaid Services (asset) Service Revenues (revenue) Unearned Revenues (liability)

On the basis of accrual concept for accounting in revenue should be recognized when it is received…

Answered: ABC Co. received $1,000 in December for…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter5: Closing Entries And The Post-closing Trial Balance

Section: Chapter Questions

Problem 8E: Considering the following events, determine which month the revenue or expenses would be recorded...

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10.
ABC Co. received $1,000 in December for services it will perform in the following month. ABC uses the accrual basis of accounting. In December ABC debited Cash for $1,000. What will be the other account involved in the December accounting entry prepared by ABC (and what type of account is it)?

Accounts Receivable (asset)

Prepaid Services (asset)

Service Revenues (revenue)

Unearned Revenues (liability)

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