On December 31, 2014, the balance in Pinnacle Exploration Company's Unearned Revenue account was a credit of $8,000. In January, 2015, the company received an advance payment of $14,000 from a new customer for services to be performed. By January 31, adjustments had been made to recognize $7,000 of the revenue which had been earned during January. What was the balance in Unearned Revenue on January 31, 2015?
A)$7,000 credit
B)$14,000 debit
C)$8,000 credit
D)$15,000 credit

Question

Quizplus · Accepted Answer

The initial balance was $8,000 credit. An additional $14,000 was received, increasing the balance to $22,000 credit. After recognizing $7,000 as earned revenue, the balance is $15,000 credit.

On December 31, 2014, the Balance in Pinnacle Exploration Company's