Question
Swell Computer Company (SWC) prepares annual financial statements. SWC received advance payments from customers during Year6 of $14,800. At December 31, Year6, $1800 of the
Swell Computer Company (SWC) prepares annual financial statements.
SWC received advance payments from customers during Year6 of $14,800. At December 31, Year6, $1800 of the advance payments still had not been earned.
Before adjusting entries, the Unearned Revenue and Service Revenue accounts had the following balances:
Unearned revenue $14,800
Service Revenue $305,000
After the adjustments are recorded and posted at December 31, Year6, the balances in the Unearned Service Revenue and Service Revenue accounts will be:
| a. | Unearned Service Revenue, $1800; Service Revenue, $318,000. | |
| b. | Unearned Service Revenue, $1800; Service Revenue, $319,800. | |
| c. | Unearned Service Revenue, $13,000; Service Revenue, $306,800. | |
| d. | Unearned Service Revenue, $1800; Service Revenue, $14,800. |
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ISO IEC 27001 Lead Auditor Mastering ISMS Audit Techniques
Authors: Dr Tamuka Maziriri
1st Edition
107903160X, 978-1079031607
