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: a. $0. b. $8,400. c. $6,000. d. $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: a. $0. b. $8,400. c. $6,000. d. $1,200.

Answer

Explanation:

Step1: Calculate monthly revenue

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

Step2: Calculate earned revenue

From August 1, 2024 to December 31, 2024, there are 5 months. The earned revenue is $1200\times5 = 6000$.

Step3: Calculate unearned revenue

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

Answer:

B. $8,400.