Unearned Revenue appears in the
A) Trial Balance Credit column, Adjustments Debit column, Income Statement Debit column, and Balance Sheet Debit column of a work sheet.
B) Trial Balance Debit column, Adjustments Credit column, Adjusted Trial Balance Debit column, and Balance Sheet Credit column of a work sheet.
C) Trial Balance Credit column, Adjustments Debit column, Adjusted Trial Balance Credit column, and Balance Sheet Credit column of a work sheet.
D) Trial Balance Credit column, Adjustments Debit column, Adjusted Trial Balance Credit column, and Income Statement Credit column of a work sheet.
E) Trial Balance Debit column, Adjustments Debit column, Adjusted Trial Balance Debit column, and Balance Sheet Debit column of a work sheet.

Question

Quizplus · Accepted Answer

Unearned revenue is a liability account and has a credit balance. It appears in the Trial Balance Credit column and Adjustments Debit column because it needs to be adjusted to its earned amount. After adjustment, it will be credited, so it appears in the Adjusted Trial Balance Credit column and Balance Sheet Credit column. It does not appear in the Income Statement because it is not an expense or revenue account.

Unearned Revenue Appears in the