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In: Accounting

On November 21st, Jerry's accounting firm collected $20,000 from John for work to be performed in...

On November 21st, Jerry's accounting firm collected $20,000 from John for work to be performed in the future. On December 10th, the accounting firm completed 60% of John's work. Assuming the beginning balance in the unearned revenue account was $0. What is the balance of the unearned revenue on December 10th after the transaction on November 21st and December 10th?

A) $12,000

B) none of these answers are correct

C) $8,000

D) $20,000

E)5,000

Solutions

Expert Solution

Answer: $8,000 (option C)

The balance in unearned revenue account after the transaction of December 10 would be =unearned revenue* percentage of work not yet completed

$20,000*40%

=$8,000

ekkarill92 answered 2 years ago
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