On January 1,Unearned Revenue of Maywood Inc.had a beginning balance of $2,000.During January,the company earned $1,000 of the unearned revenue.The company also collected $6,000 from a new customer for services to be rendered the following month.At the end of January,the Unearned Revenue account had a balance of $6,000.

Question

Quizplus · Accepted Answer

The ending balance should be $7,000. The beginning balance was $2,000, $1,000 was earned (reducing the balance), and $6,000 was added for new unearned revenue.