Pattie's Event Planning Service Collects the Fees from Its Customers

question 79

Multiple Choice

Pattie's Event Planning Service collects the fees from its customers in advance. At January 1, 2019, the balance of the unearned revenue account was a credit of $4,000. During January and February, the company collected $2,000 and $1,000 respectively. During the two-month period, the company rendered services of $5,500. At the end of February, the unadjusted trial balance will show what balance in unearned revenues?

• A)debit balance of $1,500
• B)credit balance of $1,500
• C)debit balance of $7,000
• D)credit balance of $7,000

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Definitions:

Borrowed Funds

Money that has been loaned to a borrower, which they are obligated to repay, typically with interest.

Affirmative Majority Vote

A decision-making process where a proposition is passed if it receives more than half of the votes cast by those entitled to vote.

Boards of Directors

Groups of elected individuals who represent shareholders' interests, making major decisions and overseeing the management of a corporation.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thereby having an ownership interest in the company.