Use the following information to answer questions below
On the last day of December 2016, Camrey's Trucks entered into a transaction that resulted in a receipt of $216,000 cash in advance related to services that will be provided during January 2017. During December of 2016, the company also performed $128,000 of services which were neither billed nor paid. Prior to December adjustments and before these two transactions were recorded, the company's trial balance showed service revenue of $1,165,470 at December 31, 2016. There are no other prepaid services yet to be delivered, and during the month all outstanding accounts receivable from prior months were collected.
-If Camrey's Trucks makes the appropriate adjusting entry, how much will be reported on the December 31, 2016 balance sheet as unearned revenue?
A) $ 90,000
B) $216,000
C) $ 64,000
D) $ 98,000

Question

Use the following information to answer questions below 
On the last day of December 2016, Camrey's Trucks entered into a transaction that resulted in a receipt of $216,000 cash in advance related to services that will be provided during January 2017. During December of 2016, the company also performed $128,000 of services which were neither billed nor paid. Prior to December adjustments and before these two transactions were recorded, the company's trial balance showed service revenue of $1,165,470 at December 31, 2016. There are no other prepaid services yet to be delivered, and during the month all outstanding accounts receivable from prior months were collected.
-If Camrey's Trucks makes the appropriate adjusting entry, how much will be reported on the December 31, 2016 balance sheet as unearned revenue?
A) $ 90,000
B) $216,000
C) $ 64,000
D) $ 98,000

Quizplus · Accepted Answer

Unearned revenue represents the amount collected in advance that the company has not yet earned.

Use the Following Information to Answer Questions Below