On August 1, 2016, Brian Quinn received $9600 for legal services to be performed evenly throughout the next twelve months, beginning August 1, 2016. An adjusted trial balance prepared on December 31, 2016 will show a credit balance in Unearned Revenue in the amount of:

Question

Quizplus · Accepted Answer

By December 31, 2016, five months of services have been performed, so $4000 ($9600/12 months * 5 months) is earned, leaving $5600 unearned.

On August 1, 2016, Brian Quinn Received $9600 for Legal