On December 31,2018 the balance in Energy Exploration Company's Unearned Revenue account was a credit of $6,000.In January,2019,the company received an advance payment of $12,000 from a new customer for services to be performed.By January 31,adjustments were made to recognize $4,000 of the revenue that had been earned during January.What was the balance in Unearned Revenue on January 31,2019?
A) $4,000 credit
B) $12,000 debit
C) $6,000 credit
D) $14,000 credit

Question

Quizplus · Accepted Answer

The balance in Unearned Revenue on January 31, 2019, is calculated by starting with the initial credit balance of $6,000, adding the $12,000 received in January, and then subtracting the $4,000 recognized as earned, resulting in a new credit balance of $14,000.

On December 31,2018 the Balance in Energy Exploration Company's Unearned