The TJ Company collects all service revenue in advance. The company showed a $12,500 liability on its

Question:

The TJ Company collects all service revenue in advance. The company showed a $12,500 liability on its December 31, 2011, balance sheet for unearned service revenue. During 2012, customers paid $50,000 for future services, and the income statement for the year ended December 31, 2012, reported service revenue of $52,700. What amount for the liability unearned service revenue will appear on the balance sheet at December 31, 2012?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...