On January 1,Unearned Revenue of Grossman Company Had a Beginning

question 150

True/False

On January 1,Unearned Revenue of Grossman Company had a beginning balance of $1,400.During January,the company earned $700 of the deferred revenue.The company also collected $4,000 from a new customer for services to be performed the following month.At the end of January,the Unearned Revenue account should have a balance of $4,000.

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Definitions:

Substitute Checks

Paper copies created from an original check that are legally equivalent for banking purposes, allowing for electronic processing.

Truncate

To shorten something by cutting off a part of it, commonly used in the context of modifying data, strings, or numerical values in computing.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time.

Stock Certificate

A physical document that represents ownership of shares in a company.