You are closing your books on December 31, 20X5. During the month, you received a 50% advance related to a $120,000 contract with a customer. When you received the advance, you recorded it to Revenue. The job is 40% completed on December 31, 20X5. Revenue has not been adjusted since you received the advance payment. After you prepare and record the adjusting journal entry to Revenue, what is the balance in Unearned Revenue?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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You are closing your books on
December 31, 20X5. During the
month, you received a 50%
advance related to a $120,000
contract with a customer. When
you received the advance, you
recorded it to Revenue. The job is
40% completed on December 31,
20X5. Revenue has not been
adjusted since you received the
advance payment. After you
prepare and record the adjusting
journal entry to Revenue, what is
the balance in Unearned
Revenue?
Transcribed Image Text:You are closing your books on December 31, 20X5. During the month, you received a 50% advance related to a $120,000 contract with a customer. When you received the advance, you recorded it to Revenue. The job is 40% completed on December 31, 20X5. Revenue has not been adjusted since you received the advance payment. After you prepare and record the adjusting journal entry to Revenue, what is the balance in Unearned Revenue?
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