On the last day of December 2018, Smith & Sons entered into a transaction that resulted in a receipt of $54,000 cash in advance related to services that will be provided during January 2019. During December of 2018, the company also performed $32,000 of services which were neither billed nor paid. Prior to December adjustments and before these two transactions were recorded, the company had recorded service revenue of $800,000 for the year. There are no other prepaid services yet to be delivered.
If Smith & Sons makes the appropriate adjusting entry, how much will service revenue will be reflected on the December 31, 2018 income statement?

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The Answer of On the last day of December 2018, Smith & Sons entered into a transaction that resulted in a receipt of $54,000 cash in advance related to services that will be provided during January 2019. During December of 2018, the company also performed $32,000 of services which were neither billed nor paid. Prior to December adjustments and before these two transactions were recorded, the company had recorded service revenue of $800,000 for the year. There are no other prepaid services yet to be delivered.
If Smith & Sons makes the appropriate adjusting entry, how much will service revenue will be reflected on the December 31, 2018 income statement?

On the Last Day of December 2018, Smith & Sons