On December 31, 2016, the balance in Pinnacle Exploration Company's Unearned Revenue account was a credit of $6,000. In January, 2017, the company received an advance payment of $12,000 from a new customer for services to be performed
By January 31, adjustments were made to recognize $7,000 of the revenue that had been earned during January. What was the balance in Unearned Revenue on January 31, 2017?
A) $7,000 credit
B) $12,000 debit
C) $6,000 credit
D) $11,000 credit
D .Beginning balance in Unearned Revenue $6,000
Add advance payment received 12,000
Less Unearned Revenue recognized as Service Revenue (7,000 )
Ending balance in Unearned Revenue $11,000
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