During December, an Accountant Does $700 of Bookkeeping Work for the Castorini

Multiple Choice

During December, an accountant does $700 of bookkeeping work for the Castorini Plumbing Corp., but does not bill the company until January. Which of the following is the appropriate journal entry that should be made in the December 31 balance sheet? (Assume the company prepares its balance sheet in February.)

A) No entry, since no bill was received in December
B) A credit to cash, and a debit to accounting expense, of $700
C) A credit to accrued expenses payable, and a debit to accounting expense, of $700
D) A credit to accounting expense, and a debit to cash, of $700
E) No cash moved. Accrual accounting requires the expense be recognized