On December 10, 2010 Copeta Inc.received a cheque in the amount of $50,000 from a customer for services that Copeta had yet to perform.By December 31, 2010 it had earned $20,000 of that amount.Assuming the appropriate year end adjustments were made, the 2010 balance in Copeta's unearned revenue account will be
A)$30,000.
B)$20,000.
C)$50,000.
D)Zero.

Question

Quizplus · Accepted Answer

The unearned revenue account will have a balance of $30,000, which is the amount of services not yet performed by December 31, 2010.