Two-Fifths (40%) of the Amount Recorded as Unearned Revenue Was

question 78

Multiple Choice

Two-fifths (40%) of the amount recorded as unearned revenue was earned as of 12/31/10. The adjusting entry would include

• A) a credit to service revenue for $3,000.
• B) a credit to unearned revenue for $3,000.
• C) a credit to service revenue for $2,000.
• D) a credit to unearned revenue for $2,000.

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Definitions:

Magnetite

An iron oxide mineral that is typically black and is strongly magnetic.

Quartz

A very common rock-forming silicate mineral consisting of crystalline silica.

Feldspar

A very common rock-forming silicate mineral that is abundant in most igneous and metamorphic rocks and some sedimentary rocks.

Calcite

A common rock-forming calcium carbonate mineral occurring in limestone and a variety of water-related deposits.