Rathbone Corp $\begin{array} { l r } \text { During 2021 } & \$ 140,000 \\\text { During 2022 } & 210,000 \\\text { During 2023 } & 99,000\end{array}$

question 41

Multiple Choice

Rathbone Corp. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to Unearned Service Revenues. This account had a balance of $ 1,100,000 at December 31, 2020, before year-end adjustment. Service contract costs are charged as incurred to the Service Contract Expense account, which had a balance of $ 325,000 at December 31, 2020.
Service contracts still outstanding at December 31, 2020, expire as follows:
$\begin{array} { l r } \text { During 2021 } & \$ 140,000 \\\text { During 2022 } & 210,000 \\\text { During 2023 } & 99,000\end{array}$
What amount should be reported as Unearned Service Revenues on Rathbone's December 31, 2020, statement of financial position?

• A) $ 774,000
• B) $ 325,000
• C) $ 449,000
• D) $ 124,000

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Definitions:

LDL Levels

Low-density lipoprotein levels, often referred to as "bad" cholesterol, indicative of the amount of cholesterol in the blood that can lead to plaque buildup in arteries.

Protein Metabolism

The process by which proteins are synthesized and broken down into amino acids in the body, involving digestion, absorption, and assimilation of proteins.

Liver

A large, vital organ in vertebrates responsible for detoxification, metabolism, and synthesis of various proteins.

Chemical Digestion

The process through which complex food molecules are broken down into simpler ones by enzymatic actions, making nutrients available for absorption.