On 31 December 2012, the Balance in Pinnacle Exploration Company's

question 49

Multiple Choice

On 31 December 2012, the balance in Pinnacle Exploration Company's Unearned revenue account is credit of $4 200. In January 2013, the company received an advance payment of $12 000 from a new customer for services to be performed. By 31 January, adjustments had been made to recognise $8 500 of the revenue which had been earned during January. What would be the balance in Unearned revenue on 31 January 2013?

• A)$3 500 credit
• B)$7 700 credit
• C)$16 200 credit
• D)$8 500 debit

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Definitions:

Conidium

An asexual spore that is usually formed at the tip of a specialized hypha called a conidiophore.

Basidium

The clublike spore-producing organ of basidiomycetes that bears sexual spores called basidiospores.

Ascocarps

The fruiting bodies produced by ascomycete fungi, which contain the spore-producing structures.

Mycelia

Mycelia are the vegetative parts of fungi, consisting of a network of fine, thread-like structures called hyphae.