On August 1,2014,Brian Quinn received $5,400 for legal services to be performed evenly throughout the next twelve months,beginning August 1,2014.An adjusted trial balance prepared on December 31,2014 will show a credit balance in Unearned Revenue in the amount of:

Question

Quizplus · Accepted Answer

By December 31, 2014, five months of services have been performed (August to December). The monthly revenue is $5,400 / 12 = $450. For five months, the earned revenue is 5 * $450 = $2,250. The unearned revenue remaining is $5,400 - $2,250 = $3,150.

On August 1,2014,Brian Quinn Received $5,400 for Legal Services to Be