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

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

Step2: Calculate revenue earned from August 1 to December 31

Number of months from August 1 to December 31 is 5 months. Revenue earned is $1200\times5 = 6000$.

Step3: Calculate unearned revenue

Unearned revenue = Total received - Revenue earned. So $14400 - 6000=8400$.

Answer:

B. $8,400.