e. On August 1, 2011, the company is paid $4,080 cash in advance to provide mont

Question

e.
On August 1, 2011, the company is paid $4,080 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in August. When the cash was received, the full amount was credited to the Extermination Services Revenue account.


e.
The adjusted 2011 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. (Do not round your intermediate calculations. Omit the "$" sign in your response.)

Services Revenue
Ending balances after adjustment $..............

Explanation / Answer

They received 4080 for one year. They earned 5 months, August to December, which is 4080*5/12 = 1700. The balance in the unearned account is 7 months, 4080*7/12 = 2380. Answer: Services Revenue 1700 Unearned Services Revenue 2380.

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