Question

GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $60,000 for 6-months services in advance. GreenLawn's general journal entry to record this transaction on May 1 will include a: a. Debit to Unearned Revenue for $60,000. b. Credit to Cash for $60,000. c. Credit to Unearned Revenue for $60,000. d. Debit to Accounts Receivable for $60,000. e. Credit to Accounts Receivable for $60,000.

Answer 1

c. Credit to Unearned Revenue for $60,000

Step-by-step explanation:

Based on the information given in a situation where the company provides landscaping services to clients in which On May 1 we were told a customer paid the company the amount of $60,000 in advance which means that the general journal entry to record this transaction on May 1 will include :Credit to Unearned Revenue for $60,000

Dr Cash $60,000

Cr Unearned revenue $60,000