On August 1 of the current year, Jamie Simmons received $5,400 for legal services to be performed evenly throughout the next six months. An adjusted trial balance prepared on December 31 of the current year will show a credit balance in Unearned Revenue in the amount of:

Question

Quizplus · Accepted Answer

Jamie received $5,400 for services to be performed over six months, which means $900 is earned each month. By December 31, five months have passed, so $4,500 has been earned, leaving $900 as unearned revenue.

On August 1 of the Current Year, Jamie Simmons Received