on august 1, 2024, brian quinn received $14,400 for legal services to be performed evenly throughout the…

on august 1, 2024, brian quinn received $14,400 for legal services to be performed evenly throughout the next twelve months, beginning august 1, 2024. an adjusted trial balance prepared on december 31, 2024 will show a credit balance in unearned revenue in the amount of.\n\na. $0.\nb. $8,400.\nc. $6,000.\nd. $1,200.

on august 1, 2024, brian quinn received $14,400 for legal services to be performed evenly throughout the next twelve months, beginning august 1, 2024. an adjusted trial balance prepared on december 31, 2024 will show a credit balance in unearned revenue in the amount of.\n\na. $0.\nb. $8,400.\nc. $6,000.\nd. $1,200.

Answer

Explanation:

Step1: Calculate monthly revenue

The total amount is $14,400 for 12 - month service. So the monthly revenue is $\frac{14400}{12}=1200$.

Step2: Calculate the number of months passed

From August 1, 2024 to December 31, 2024, the number of months passed is $5$ (August, September, October, November, December).

Step3: Calculate the earned revenue

The earned revenue is $1200\times5 = 6000$.

Step4: Calculate the unearned revenue

The unearned revenue is $14400-6000=8400$.

Answer:

B. $8,400.