GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $60,000 for 6-months services in advance. GreenLawnâs general journal entry to record this transaction will include a:

Multiple Choice

Debit to Unearned Revenue for $60,000.

Credit to Cash for $60,000.

Credit to Unearned Revenue for $60,000.

Debit to Accounts Receivable for $60,000.

Credit to Accounts Receivable for $60,000.

Services are not performed by GreenLawn Co. so the amount received will be considered as a liability and It will be named as unearned revenue. Cash received will be debited to the cash account. After the performance of service of each month the revenue will be recognized and transferred from unearned revenue account to service revenue account.

abiolataiwo2015 abiolataiwo2015 · Answer 2 · 2021-09-03T21:49:26+02:00

GreenLawn general journal entry to record this transaction will include a: Credit to Unearned Revenue for $60,000

Since the company received cash amount of $60,000 from it's clients which means that Cash amount of $60,000 will be debited while

unearned revenue will be credited because the company is yet to render their service to their clients.

GreenLawn Co. Journal entry

Dr Cash $60,000

Cr Unearned revenue $60,000

Inconclusion GreenLawn general journal entry to record this transaction will include a: Credit to Unearned Revenue for $60,000

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