Question
An insurance company received advance payments from clients during 2019 of $12,000. At December 31, 2019, $10,000 of the advance payments still had not been
An insurance company received advance payments from clients during 2019 of $12,000. At December 31, 2019, $10,000 of the advance payments still had not been earned. After the adjustments are recorded and posted at December 31, 2019, what will the balances be in the Unearned Insurance Revenue and Insurance Revenue accounts?
Unearned Insurance Revenue Insurance Revenue
| a. | $10,000 $2,000 | |
| b. | $10,000 $10,000 | |
| c. | $0 $12,000 | |
| d. | $2,000 $10,000 |
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Performance Auditing A Measurement Approach
Authors: Ronell B. Raaum, Stephen L. Morgan
4th Edition
0894134647, 978-0894134647
