Ted Catering Received $800 Cash in Advance from a Customer $\begin{array}{|l|l|l|}\hline \text { Unearned Catering Revenue } & 800 & \\\hline \text { Catering Revenue } & & 800 \\\hline\end{array}$

Multiple Choice

Ted Catering received $800 cash in advance from a customer for catering services to be provided in three months. Determine the general journal entry that Ted Catering will make to record the cash receipt. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.

A) $\begin{array}{|l|l|l|}\hline \text { Unearned Catering Revenue } & 800 & \\\hline \text { Catering Revenue } & & 800 \\\hline\end{array}$
B) $\begin{array}{|l|r|r|}\hline \text { Cash } & 800 & \\\hline \text { Accounts Receivable } & & 800 \\\hline\end{array}$
C) $\begin{array}{|l|r|r|}\hline \text { Cash } & 800 & \\\hline \text { Unearned Catering Revenue } & & 800 \\\hline\end{array}$
D) $\begin{array}{|l|r|r|}\hline \text { Cash } & 800 & \\\hline \text { Catering Revenue } & & 800 \\\hline\end{array}$
E) $\begin{array}{|l|r|r|}\hline \text { Accounts Receivable } & 800 & \\\hline \text { Catering Revenue } & & 800 \\\hline\end{array}$