On April 1,Year 1,Guyton Sails Accepted a $12,000 Advance Payment

question 140

Multiple Choice

On April 1,Year 1,Guyton Sails accepted a $12,000 advance payment for maintaining a customer's fleet of sailboats.The contract is for 12 months.In May Year 1,the company performed $1,200 worth of repairs.What is the remaining liability that will appear on the company's balance sheet at the end of May?

• A) $1,200
• B) $10,000
• C) $10,800
• D) $12,000

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Definitions:

Cane

A walking aid used to provide support and improve balance for individuals with mobility issues.

Body Mechanics

The use of one's body to produce motion that is safe, energy conserving, and anatomically and physiologically efficient to prevent and correct posture problems.

Wide Base of Support

A posture strategy where the feet are set apart to enhance stability and balance.

Erect Posture

Maintaining an upright position of the body with the spine straight, often associated with standing or sitting.