What should be the December 31 balance for Unearned Revenue?
A) $0.
B) $1,650.
C) $12,360.
D) $19,800.

Question

Quizplus · Accepted Answer

Unearned Revenue is a liability account that represents payments received in advance for services that have not yet been performed. As services are performed, the Unearned Revenue account is reduced and the Service Revenue account is increased. On December 31, all of the Unearned Revenue has been earned, so the balance should be $0.

What Should Be the December 31 Balance for Unearned Revenue