On August 1 of the Current Year, Jamie Simmons Received

question 35

Multiple Choice

On August 1 of the current year, Jamie Simmons received $5,400 for legal services to be performed evenly throughout the next six months. An adjusted trial balance prepared on December 31 of the current year will show a credit balance in Unearned Revenue in the amount of:

• A)$4,500.
• B)$900.
• C)$0.
• D)$5,400.

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Definitions:

Secured Interests

Interests in personal property or fixtures that secure payment or performance of an obligation, often seen in lending and financing agreements.

Take Possession

Take possession refers to the act of assuming physical control or ownership of a piece of property or asset.

Collateral

Assets promised as security for the repayment of a loan, which can be seized by the lender if the borrower fails to repay according to the terms of the loan agreement.

Security Agreement

A legal document that provides a lender a security interest in a specified asset or property that is pledged as collateral.