Tracy, Inc.

-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.
 
-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

The correct amount of Service Revenue to be reported in the July income statement is the total Service Revenue (already earned) plus the amount of Unearned Service Revenue that was earned in July. 
From the trial balance, the total Service Revenue is $16,510 (credit balance) and the Unearned Service Revenue is $4,810 (credit balance). 
Therefore, the correct amount of Service Revenue to be reported in the July income statement is $16,510 + $4,810 = $21,320 (Choice C).

Tracy, Inc. -Refer to the Trial Balance for Tracy, Inc