Which of the following events does not require a journal entry?
A) Purchase of a one-year insurance policy
B) Agreement to perform a service at a future date
C) Performance of a service agreed to at a past date
D) Payment for a service performed previously

Question

Quizplus · Accepted Answer

An agreement to perform a service at a future date does not require a journal entry because no transaction has occurred yet. Journal entries are only made when a transaction takes place, such as the exchange of goods, services, or cash.

Which of the Following Events Does Not Require a Journal