Question

The accounting records for Social Event Planning Services include the following select unadjusted balances on December​ 31, 2018: Salaries​ Expense, $6,000; Service​ Revenue: $18,000; Unearned​ Revenue, $400; Supplies​ Expense, $600; Rent​ Expense, $300; Depreciation Expensedash​Equipment, ​$200.During December, the company worked with a new client and provided event planning services for an upcoming event. It will receive the full amount of $1,500 when the event is completed in January 2019. As of the end of December 2018, it performed one-third of the services covered by the contract. The company made the accrual adjustments. The balance of Service Revenue, as shown on the adjusted trial balance, should be a ________.
A. debit balance of $1,500
B. credit balance of $19,500
C. credit balance of $19,000
D. debit balance of $20,500

Answer 1

Answer:

$18,500

Explanation:

The computation of the balance of Service Revenue shown on the  adjusted trial balance is shown below:

= Service revenue ending balance + accrued value

where,

Accrued value =  $1,500 ÷ 3 = $500

And, the service revenue ending balance is $18,000

So, the Service revenue balance equal to

= $18,000 + $500

= $18,500

This is the answer but the same is not given in the options mentioned in the question.