Paramount Event Planning Services Collects Fees from Its Customers in Advance.On

question 55

Multiple Choice

Paramount Event Planning Services collects fees from its customers in advance.On January 1,2017,the balance of its Unearned Revenue account was $6,000 (CR) .During January and February,the company collected $3,000 and $800 as advance fees.During the two-month period,it performed services of $7,500 related to the deferred revenue.What is the balance in Unearned Revenue at the end of February?

• A)debit balance of $6,000
• B)credit balance of $6,000
• C)debit balance of $2,300
• D)credit balance of $2,300

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Definitions:

Compounded Semi-Annually

The process of applying interest to a principal sum twice a year, resulting in interest earning interest over time.

Monthly Payments

Recurring payments made every month towards the repayment of loans or financial obligations, such as mortgages or personal loans.

Investing

Distributing monetary resources in the hope of creating financial gain or earnings.

Compounded Monthly

Pertains to the process where interest is calculated monthly and added to the initial principal amount of the investment or debt.