Final answer:
Jamesway received a $4,000 payment in advance for services to be rendered. As of December 31, 2011, the company had performed services worth $1,800. This leaves an unearned revenue of $2,200.
Step-by-step explanation:
The subject of this question is Business and the grade level is High School.
Jamesway received a $4,000 payment in advance from a customer for services to be rendered on October 20, 2011. As of December 31, 2011, the company had performed services worth $1,800. This means that the company still has unearned revenue of $2,200 ($4,000 - $1,800) as of the end of the year.
Unearned revenue is a liability on the company's books, representing the obligation to provide services or deliver goods in the future. When the company performs the services, the unearned revenue is then recognized as revenue and decreases the liability.