June 8, 2009 – NoDirt entered into a one year contract to provide cleaning services to a customer. NoDirt will start providing the services on July 1, 2009. The customer paid NoDirt $4,500 cash when the contract was signed on June 8, 2009. The $4,500 is

June 8, 2009 – NoDirt entered into a one year contract to provide cleaning services to a customer. NoDirt will start providing the services on July 1, 2009. The customer paid NoDirt $4,500 cash when the contract was signed on June 8, 2009. The $4,500 is

June 8, 2009 – NoDirt entered into a one year contract to provide cleaning services to a customer. NoDirt will start providing the services on July 1, 2009. The customer paid NoDirt $4,500 cash when the contract was signed on June 8, 2009. The $4,500 is payment for the first three months of cleaning service.

Account Name

Debit

Credit

A.

Cash

4,500



Service Revenue


1,500


Prepaid Cleaning Service Receivable


3,000

B.

Service Revenue

4,500



Cash


4,500

C.

Unearned Service Revenue

4,500



Cash


4,500

D.

Retained Earnings

4,500



Services Payable


4,500

E. None of the above


Price: £ 45

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