Marian Company Collected $8,000 Cash in Advance During March for Services

question 37

Essay

Marian Company collected $8,000 cash in advance during March for services to be performed in April and May. At the end of April an adjusting entry was made to debit Unearned Revenue and credit Service Revenue for $4,200. The ending balance in the Unearned Revenue account was $3,800.
A. What entry was made during March when the original $8,000 was collected?
B. How much will Marian report on its balance sheet as a liability at the end of April as a result of the transactions?

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Definitions:

Subduction Zone

An area where one tectonic plate is being forced under another, often associated with volcanic activity and earthquakes.

Deep Earthquakes

Seismic events that occur at depths greater than 70 kilometers below the Earth's surface, typically resulting from subduction or other deep crustal activities.

Shallow Earthquakes

Earthquakes that occur at a depth of less than 70 kilometers below the Earth's surface.

Continental Collision

A geological process where two continental plates collide, typically resulting in the formation of mountain ranges.