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Use the following information about Fit Corporation to answer the next four questions. On December 1, 2021, Fit Corporation received $60,000 cash from customers
Use the following information about Fit Corporation to answer the next four questions. On December 1, 2021, Fit Corporation received $60,000 cash from customers as two-year membership dues to its gym facility. The service period started December 1, 2021. Fit Corporation earns the revenue from the membership fees evenly each month. The company records adjusting entries only at year end and fiscal year ends Dec. 31, 2021. 1. What balance is shown for Service Revenue on Fit Corporation's fiscal year 2021 Income Statement? a. $2,500 b. $27,500 c. $30,000 d. $57,500 e. $60,000 2. What balance is shown for Unearned Revenue on Fit Corporation's December 31, 2021 Balance Sheet? a. $2,500 b. $27,500 c. $30,000 d. $57,500 e. $60,000 3. What balance is shown for Service Revenue on Fit Corporation's fiscal year 2022 Income Statement? a. $2,500 b. $27,500 c. $30,000 d. $57,500 e. $60,000 4. What balance is shown for Unearned Revenue on Fit Corporation's December 31, 2022 Balance Sheet? a. $2,500 b. $27,500 c. $30,000 d. $57,500 e. $60,000
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