On September 1, 2012, Carter's Construction Company Received a $5,400 $\begin{array}{cc}\text { Unearned Construction Revenue } & 1,800 \\\text { Construction Revenue } & 1,800\end{array}$

On September 1, 2012, Carter's Construction Company received a $5,400 deposit towards the construction of a new house. The house will not be finished until February 28, 2013. The deposit was originally recorded as Unearned construction revenue. What adjusting entry is required at December 31, 2012?

A)
$\begin{array}{cc}\text { Unearned Construction Revenue } & 1,800 \\\text { Construction Revenue } & 1,800\end{array}$
B)
$\begin{array}{lrl}\text { Construction Revenue } & 3,600 & \\\text { Unearned Construction Revenue } && 3,600\end{array}$
C)
$\begin{array}{lr}\text {Cash }&1,800\\\text {Construction Revenue }&&1,800\\\end{array}$

D)
$\begin{array}{cc}\text { Unearned Construction Revenue } & 3,600 \\\text { Construction Revenue } & 3,600\end{array}$

Correct Answer:

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