A Further Look at Financial StatementsBe. 117On February 1, the Acts Tax Service received a $2,000 cash retainer for tax preparation services tobe rendered ratably over the next 4 months. The full amount was credited to the liability accountUnearned Revenue. Assuming that the revenue is earned ratably over the 4 month period, whatbalance would be reported on the February 28 balance sheet for Unearned Revenue?
Better Publications, sold annual subscriptions to their magazine for $24,000 in December, 2006.The magazine is published monthly. The new subscribers received their first magazine in January,2007.1.What adjusting entry should be made in January if the subscriptions were originallyrecorded as a liability?2.What amount will be reported on the January 2007 balance sheet for Unearned Revenue?Be. 119River Ridge Music School borrowed $20,000 from the bank signing a 10%, 6-month note onNovember 1. Principal and interest are payable to the bank on May 1. If the company preparesmonthly financial statements, what adjusting entry should the company make at November 30 withregard to the note (round answer to the nearest dollar)?4-33