Author Question: Lay-Z Floors, Inc's Unearned revenue balance on its December 31, 2011 unadjusted trial balance was ... (Read 78 times)

cdr_15 · **on:** Jul 5, 2018

Lay-Z Floors, Inc's Unearned revenue balance on its December 31, 2011 unadjusted trial balance was 3,000. As of December 31, 2011, Lay-Z Floors had earned 1,000 of the amounts collected in advance.

The adjusting entry to record is a debit to ________.
A) Unearned revenue of 1,000 and a credit to Revenue of 1,000
B) Cash of 1,000 and a credit to Revenue of 1,000
C) Accounts receivable of 2,000 and a credit to Revenue of 2,000
D) Revenue of 2,000 and a credit to Unearned revenue of 2,000

Question 2

Current assets include cash and other assets that will be converted into cash or consumed within one year or the normal operating cycle of the business, whichever is longer.
a. True
b. False
Indicate whether the statement is true or false