Question

XYZ Company collected $91,800 in June of 2019 for 9 months of service which would take place from October of 2019 through June 2020. The revenue reported from this transaction during 2019 (On December 31) would be:

16,400

10,200

91,800

30,600

Answer 1

SOLUTION :
		Calculation of Total Revenue as on Dec 31
		Advance Received	$                   91,800
		Divide By :	"/" By
		No. of Months for Advance Paid	9 Month
		Per month Rent Expenses = $ 91,800 / 9 Months =	$                   10,200	Per month
		No. of Month Expired as on december 31 (Oct to Dec )	3 Months
		Revenue Generated = ($ 10,200 X 3Months)	$                   30,600
	Jounral entry of the same is posted in books as below at the enf of yewar
	Journal Entries
	Date	Account Title and explanation	Debit	Credit
	Dec. 31	Unearned Revenue	$                   30,600
		Service Revenue		$                30,600
	Answer = Revenue reported from Transaction = Option 4 = $ 30,600