Question
ABC Company had the following transactions during 2019: May 1: received 6000$ cash in advance for services to be provided over the coming 10 months.
ABC Company had the following transactions during 2019:
May 1: received 6000$ cash in advance for services to be provided over the coming 10 months.
August 5 : sold merchandise for 7,560$ including 8% sales tax.
September 1 : borrowed 20,000$ from FNB bank by issuing 6 months , 6% interests bearing note.
October 10: sold merchandise on account for 6,000$ plus 10% sales tax.
December 31 : prepared the adjusting entry to record the service revenue earned.
December 31 : prepared the adjusting entry to record the accrued interest to FNB bank.
December 31: remitted the sales taxes to the government.
The earned amount of the service revenue on December 31 is" *
$3,500
$4,000
$4,500
$5,000
The remaining balance of the Unearned Service Revenue after December 31 is: *
Zero
$2,000
$3,000
$4,000
PS: this is the third time that i post this question because the handwriting is not clear
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