Question

On December​ 31, 2018 the balance in Energy Exploration​ Company's Unearned Revenue account was a credit of $ 10 comma 000. In​ January, 2019, the company received an advance payment of $ 12 comma 000 from a new customer for services to be performed. By January​ 31, adjustments were made to recognize $ 7 comma 000 of the revenue that had been earned during January. What was the balance in Unearned Revenue on January​ 31, 2019?

Answer 1

Answer:

$15,000

Explanation:

Given that,

Credit balance in Unearned Revenue account = $10,000

Advance payment by a customer = $12,000

Revenue earned during January = $7,000

Balance in unearned revenue:

= Credit balance in Unearned Revenue account + Advance payment by a customer - Revenue earned during January

= $10,000 + $12,000 - $7,000

= $15,000

Therefore, the balance in Unearned Revenue on January​ 31, 2019 is $15,000.