The outng recarts oer socal Svere PpaneThe1d2s nse 00 Sanace

The outng recarts oer socal Svere PpaneThe1d2s nse $0,0, Sanace Revense $17,000, Uneamed Revenue, $400, Supplies Expense, $600, Rent Expense, $300, Depreciation Expense-Equipment, $200 of $1,500 when the event is Dunng December, the company worked with a new client and provided event planning services for an upcoming event Iit well receve the fultl amount compieted in January 2019 As of the end of December 2018, it perfomed one-third of the services covered ty the contract The company made the aconal adjustments The balance of Service Revenue, as shown on the ajusted trial balance, should be a O A credit balance of $17,000 O B. credit balance of $17.500 O C debit balance of 518,500 O D debit balance of $1,500

Solution

The contract was entered in december, and is completed by January. It is a short term contract. Completed contract method need to be used.

Therefore, revenue of that contract cannot be recognized.

The answer would be, Service Revenue should be a credit balance of $17,000.