Coronado Industries sells major household appliance service contracts for cash. The service contracts are for a one ycar, two-year, or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of $965000 at December 31, 2019 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $243000 at December 31, 2019. Outstanding service contracts at December 31, 2019 expire as follows: During 2020 During 2021 During 2022 $198000 $318000 $142000 What amount should be reported as unearned service contract revenues in Coronado's December 31, 2019 balance sheet? $460000. O $658000. O $722000. O $516000.
Coronado Industries sells major household appliance service contracts for cash. The service contracts are for a one ycar, two-year, or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of $965000 at December 31, 2019 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $243000 at December 31, 2019. Outstanding service contracts at December 31, 2019 expire as follows: During 2020 During 2021 During 2022 $198000 $318000 $142000 What amount should be reported as unearned service contract revenues in Coronado's December 31, 2019 balance sheet? $460000. O $658000. O $722000. O $516000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Coronado Industries sells major household appliance service contracts for cash. The service contracts are for a one ycar, two-year,
or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance
of $965000 at December 31, 2019 before year-end adjustment. Service contract costs are charged as incurred to the service
contract expense account, which had a balance of $243000 at December 31, 2019. Outstanding service contracts at December 31,
2019 expire as follows:
During 2020
During 2021
During 2022
$198000
$318000
$142000
What amount should be reported as unearned service contract revenues
in Coronado's December 31, 2019 balance sheet?
$460000.
O $658000.
O $722000.
O $516000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc56d9c5c-d498-408f-8c02-4dd66f146ad4%2Ffc7ca38d-e72d-4b02-8c76-ec6c3262bebd%2Fweg72dp.png&w=3840&q=75)
Transcribed Image Text:Coronado Industries sells major household appliance service contracts for cash. The service contracts are for a one ycar, two-year,
or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance
of $965000 at December 31, 2019 before year-end adjustment. Service contract costs are charged as incurred to the service
contract expense account, which had a balance of $243000 at December 31, 2019. Outstanding service contracts at December 31,
2019 expire as follows:
During 2020
During 2021
During 2022
$198000
$318000
$142000
What amount should be reported as unearned service contract revenues
in Coronado's December 31, 2019 balance sheet?
$460000.
O $658000.
O $722000.
O $516000.
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