Duck Insurance Company Received Advance Payments from Customers During 2012

question 82

Short Answer

Duck Insurance Company received advance payments from customers during 2012 of $100,000. At December 31, 2012, $15,000 of the advance payments still had not been earned. After the adjustments are recorded and posted at December 31, 2012, what will the balances be in the Unearned Insurance Revenue and Insurance Revenue accounts?

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Definitions:

Secondary Stimulus

A stimulus that acquires the capacity to evoke a conditioned response after being paired with a primary stimulus.

Acquisition

The process of learning or obtaining new information, skills, or responses, as in the initial stage of conditioning in psychology.

Electric Shock

A sudden discharge of electricity through a part of the body, causing injury or involuntary muscle contraction.

Flatworm

A type of simple invertebrate animal with a flat, soft body, many of which are parasites or live in water.