A company provided $12,000 of consulting services,and was immediately paid in cash by the customer.Identify the journal entry below that properly records this transaction.
A) $$\begin{array} { | l | r | l | }
\hline \text { Accounts receivable } & 12,000 & \
\hline \text { Cash } & & 12,000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | l | }
\hline \text { Cash } & 12,000 & \
\hline \text { Consulting services revenue } & & 12,000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | l | }
\hline \text { Consulting services revenue } & 12,000 & \
\hline \text { Cash } & & 12,000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | l | }
\hline \text { Accounts payable } & 12,000 & \
\hline \text { Consulting services revenue } & & 12,000 \
\hline
\end{array}$$
E) $$\begin{array} { | l | r | l | }
\hline \text { Accounts receivable } & 12,000 & \
\hline \text { Consulting services revenue } & & 12,000 \
\hline
\end{array}$$

Question

A company provided $12,000 of consulting services,and was immediately paid in cash by the customer.Identify the journal entry below that properly records this transaction.
A) $$\begin{array} { | l | r | l | } 
\hline \text { Accounts receivable } & 12,000 & \
\hline \text { Cash } & & 12,000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | l | } 
\hline \text { Cash } & 12,000 & \
\hline \text { Consulting services revenue } & & 12,000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | l | } 
\hline \text { Consulting services revenue } & 12,000 & \
\hline \text { Cash } & & 12,000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | l | } 
\hline \text { Accounts payable } & 12,000 & \
\hline \text { Consulting services revenue } & & 12,000 \
\hline
\end{array}$$
E) $$\begin{array} { | l | r | l | } 
\hline \text { Accounts receivable } & 12,000 & \
\hline \text { Consulting services revenue } & & 12,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The entry should debit cash for the amount received and credit consulting revenue for the services provided. Choice B shows a debit of $12,000 to cash and a credit of $12,000 to consulting revenue, which correctly records the transaction.

A Company Provided $12,000 of Consulting Services,and Was Immediately Paid Accounts receivable 12,000 Cash 12,000\begin{array} { | l | r | l | } \hline \text { Accounts receivable } & 12,000 & \\\hline \text { Cash } & & 12,000 \\\hline\end{array} Accounts receivable Cash ​12,000​12,000​​

A Company Provided $12,000 of Consulting Services,and Was Immediately Paid $\begin{array} { | l | r | l | } \hline \text { Accounts receivable } & 12,000 & \\\hline \text { Cash } & & 12,000 \\\hline\end{array}$