Pattie's Event Planning Service has just prepared the unadjusted trial balance,which shows the following balances:
Salary expense: Debit $8,000
Service revenues: Credit $3,000
Interest expense: 0
Late in this month,she began working with a new client,providing event planning services for an upcoming event.When the event is complete,in the following month,she will collect the full amount of $900 from her client.As of the end of this month,she has rendered one-third of the services covered by the contract.She makes accrual adjustments monthly.The final adjusted balance of Service revenues,as shown on the adjusted trial balance,should be a:
A) debit balance of $300.
B) credit balance of $3,900.
C) debit balance of $3,300.
D) credit balance of $3,300.

Question

Pattie's Event Planning Service has just prepared the unadjusted trial balance,which shows the following balances: 
Salary expense: Debit $8,000
Service revenues: Credit $3,000
Interest expense: 0
Late in this month,she began working with a new client,providing event planning services for an upcoming event.When the event is complete,in the following month,she will collect the full amount of $900 from her client.As of the end of this month,she has rendered one-third of the services covered by the contract.She makes accrual adjustments monthly.The final adjusted balance of Service revenues,as shown on the adjusted trial balance,should be a:
A) debit balance of $300.
B) credit balance of $3,900.
C) debit balance of $3,300.
D) credit balance of $3,300.

Quizplus · Accepted Answer

D) Calculations: $900 × 1/3 = $300 + $3,000 = $3,300

Pattie's Event Planning Service Has Just Prepared the Unadjusted Trial