Tracy,Inc. Tracy,Inc.adjusts its books each month but closes its books at the end of the year.The trial balance at July 31 before adjustments is as follows:
Refer to the trial balance for Tracy,Inc.
According to contracts,$4,810 of Unearned Service Revenue has been earned in July.Which of the following is the correct amount of Service Revenue to be reported in the July income statement?

Question

Tracy,Inc. Tracy,Inc.adjusts its books each month but closes its books at the end of the year.The trial balance at July 31 before adjustments is as follows:
 Refer to the trial balance for Tracy,Inc.
According to contracts,$4,810 of Unearned Service Revenue has been earned in July.Which of the following is the correct amount of Service Revenue to be reported in the July income statement?

Quizplus · Accepted Answer

To determine the correct amount of Service Revenue to be reported in the July income statement, we need to add the amount of Unearned Service Revenue that has been earned in July to the Service Revenue account.

From the trial balance, we can see that the balance of the Service Revenue account is $16,510 ($12,800 + $3,710).

According to contracts, $4,810 of Unearned Service Revenue has been earned in July. Therefore, the correct amount of Service Revenue to be reported in the July income statement is $21,320 ($16,510 + $4,810).

So, the best choice is C.

Tracy,Inc Tracy,Inc