During 2015, Maverick Law Firm Had the Following Transactions with It

Multiple Choice

During 2015, Maverick Law Firm had the following transactions with it clients (customers) :
-On February 1, 2015, the company received cash of $5,000 from clients in payment of their account balances as of December 31, 2014.
-On November 1, 2015, the company received $2,000 cash as payments in advance for law services to be performed in 2016.
-The company received a total of $13,000 in cash for law services that were performed during 2015.
-The company sent bills totaling $4,000 to clients for services performed during 2015; this amount was unpaid as December 31, 2015.
-Use the information above to answer the following question.Which of the following statements about the activities for Maverick Law Firm for 2015 is correct?

A) If Accounts Receivable at December 31, 2014 totaled $25,000, the amount of Accounts Receivable to be reported on the Balance Sheet at December 31, 2015 will be $24,000.
B) The $2,000 received from clients for law services to be performed next year will be reported as revenue on the 2015 income statement.
C) The $4,000 owed by clients for services performed this year will be reported as Accounts Payable on the balance sheet at December 31, 2015.
D) The $5,000 received this year from clients in payment of their accounts will be reported as Services Revenue on the 2015 income statement.