Question

The Unearned Revenue account of College Incorporated began 2018 with a normal balance of $7,000 and ended 2018 with a normal balance of $12,000. During 2018, the Unearned Revenue account was credited for $29,000 that College will earn later. Based on these facts, how much revenue did College earn in 2018?

Answer 1

College earned revenue of $24,000 during 2018

Step-by-step explanation:

Given:

Opening balance of unearned revenue account = $7,000

Unearned revenue credited to college = $29,000

Closing balance = $12,000

Revenue earned by college during the year = Opening balance + unearned revenue during the year - closing balance

= 7,000 + 29,000 - 12,000

=$24,000

College earned revenue of $24,000 in 2018.