The year-end adjustment to recognize one month's work on the three-month contract results in a $2,000 decrease in liabilities (unearned revenue) and an increase in equity (retained earnings due to recognizing revenue) .
The following account balances were drawn from the 2016 financial statements of Grayson Company:
-Prior to closing,Syracuse Company's accounting records showed the following balances:
After closing,Syracuse's retained earnings balance would be
Definitions:
Interest Rate
The ratio of a loan that represents interest expenses to the borrower, typically articulated as an annual percentage of the loan yet to be repaid.
Selling Price
The price at which an item or service is sold to buyers.
Face Value
The nominal or stated value of a security or coin, as printed or stamped on the face of it, and not necessarily its market value.
Significant Influence
A level of control or impact over decisions, operations, or governance in various contexts, including business, politics, and social settings.
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