Question
On the last day of December 2016, Camreys Trucks entered into a transaction that resulted in a receipt of $216,000 cash in advance related to
On the last day of December 2016, Camreys Trucks entered into a transaction that resulted in a receipt of $216,000 cash in advance related to services that will be provided during January 2017. During December of 2016, the company also performed $128,000 of services which were neither billed nor paid. Prior to December adjustments and before these two transactions were recorded, the companys trial balance showed service revenue of $1,165,470 at December 31, 2016. There are no other prepaid services yet to be delivered, and during the month all outstanding accounts receivable from prior months were collected. If Camreys Trucks makes the appropriate adjusting entry for all work performed in 2016, how much will service revenue will be reflected on the December 31, 2016 income statement?
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