Question

Hoffman, Inc. adjusts its books each month but closes its books at the end of the year. The trial balance at March 31 before adjustments is as follows: Debit Credit Cash $ 11,110 Accounts Receivable 9,810 Supplies 1,490 Prepaid Insurance 2,760 Equipment 21,600 Accumulated Depreciation: Equipment $ 8,640 Unearned Service Revenue 7,450 Capital Stock 6,150 Retained Earnings 24,350 Dividends 1,750 Service Revenue Earned 13,510 Salaries Expense 8,750 Utilities Expense 580 Rent Expense 2,250 $ 60,100 $ 60,100 According to service contracts, $5,000 of the Unearned Service Revenue has been earned in March. The amount of Service Revenue Earned to be reported in the March income statement is:

Answer 1

Service Revenue Earned to be reported in the March income statement is: $18,510

Unadjusted balance of Service revenue	$ 13,510.00
Add: Adjustment for Unearned revenue earned in this year	$    5,000.00
Service Revenue Earned to be reported in the March income statement	$ 18,510.00