An insurance company received advance payments of $12,000 from clients during the current year. At December 31, $10,000 of the advance payments still had not been earned. After the adjustments are recorded and posted at December 31, what will the balances be in the unearned insurance revenue and insurance revenue accounts? unearned insurance revenue: $10,000; insurance revenue: $2,000 unearned insurance revenue: $10,000; insurance revenue: $12,000 unearned insurance revenue: $0; insurance revenue: $12,000 unearned insurance revenue: $2,000; insurance revenue: $10,000
An insurance company received advance payments of $12,000 from clients during the current year. At December 31, $10,000 of the advance payments still had not been earned. After the adjustments are recorded and posted at December 31, what will the balances be in the unearned insurance revenue and insurance revenue accounts? unearned insurance revenue: $10,000; insurance revenue: $2,000 unearned insurance revenue: $10,000; insurance revenue: $12,000 unearned insurance revenue: $0; insurance revenue: $12,000 unearned insurance revenue: $2,000; insurance revenue: $10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An insurance company received advance payments of $12,000 from clients during the current year. At December 31, $10,000 of the advance payments still had not been earned. After the adjustments are recorded and posted at December 31, what will the balances be in the unearned insurance revenue and insurance revenue accounts?
unearned insurance revenue: $10,000; insurance revenue: $2,000
unearned insurance revenue: $10,000; insurance revenue: $12,000
unearned insurance revenue: $0; insurance revenue: $12,000
unearned insurance revenue: $2,000; insurance revenue: $10,000
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