Elliott Smith is a lawyer who requires that his clients pay him in a.pdf

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Elliot corners a Big A1 on Mean Street and they then fire at each other in sequence A,E,A,E.....Big A1 scores a \"hit\" with probability Pa, while Elliot \"serves justice\" with probability Pe. The first success ends the shootout. Determine P(Good triumphs over Evil(Big A1)), and evaluate it for several values of Pa and Pe. Solution.

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Elliott Smith is a lawyer who requires that his clients pay him in advance of legal services
rendered. Elliott routinely credits Service Revenue when his clients pay him in advance. In June
Elliott collected $15,000 in advance fees and completed 70% of the work related to these fees.
What adjusting entry is required by Elliott's firm at the end of June? A) Unearned Service
Revenue.....10,500, Service Revenue......10,500 B) Unearned Service Revenue....4,500, Service
Revenue......4,500 C) Cash....15,000, Service Revenue....15,000 D) Service Revenue....4,500,
Unearned Service Revenue.....4,500
Solution
The answer is D:
Service Revenue 4,500
Unearned Service Revenue 4,500
This is because out of the $15,000 that was collected, he earned only 70% which results in the
amount of $4,500. ($15,000 - 70%= $4,500)
With this in mind we can establish that the adjusting entry for service revenue and unearned
service revenue is the amount of $4,500.

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