Carithers Cleaning Service received advance payments from customers during 2013 of $24,000. At December 31, 2013, $5,000 of the advance payments still had not been earned. After the adjustments are recorded and posted at December 31, 2013, the balances in the Unearned Service Revenue and Service Revenue accounts will be: Unearned Service Revenue Service Revenue

Question

Quizplus · Accepted Answer

The unearned portion of the revenue is $5,000, so Unearned Service Revenue will have a balance of $5,000. The earned portion is $19,000 ($24,000 - $5,000), so Service Revenue will have a balance of $19,000.

Carithers Cleaning Service Received Advance Payments from Customers During 2013