Short Answer Questions 1 On December 14 Bench Company receiv

Short Answer Questions

1. On December 14 Bench Company received $3,700 cash for consulting services that will be performed in January. Bench records all such prepayments in a liability account. Prepare a general journal entry to record the $3,700 cash receipt.

Solution

Dec. 14 Cash 3,700
Unearned Consulting Fees 3,700