Brompton Book Club Company received advance payments from customers during 2014 of $5,000.At December 31,2014,$1,200 of the advance payments still had not been earned.After the adjustments are recorded and posted at December 31,2014,what will the balances be in the Unearned Book Revenue and Book Revenue accounts? Unearned Book Revenue Book Revenue

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The $1,200 of advance payments that still had not been earned at December 31, 2014, need to be moved from the Unearned Book Revenue account to the Book Revenue account. Therefore, the Unearned Book Revenue account will have a balance of $0, and the Book Revenue account will have a balance of $5,000 (the total amount of advance payments received). However, since only $3,800 of the advance payments had actually been earned by December 31, 2014, this amount will be reflected as Book Revenue, resulting in a balance of $3,800. Therefore, the balances will be: Unearned Book Revenue = $0 and Book Revenue = $3,800.

Brompton Book Club Company Received Advance Payments from Customers During