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On February 1, Entity G received an $11,000 deposit from a customer for construction services
to be provided over the next 11 months and properly recorded it. Due to severe weather, Entity G
was unable to start the job during February. Which is the correct monthly journal entry for Entity
G on February 28?
Dr. Unearned revenue 1,000
Cr. Service revenue 1,000
No journal entry should be recorded on February 28.
Dr. Cash 11,000
Cr. Service revenue 11,000
Dr. Cash 11,000
Cr. Unearned revenue 11,000

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