Question

Consider Adjusting Journal Entries - Unearned Revenue

Skypress Company collected $5,600 in May of 2013 for 4 months of service which would take place from October of 2013 through January of 2014. The revenue reported from this transaction during 2013 would be:


$0


$4,200


$5,600


$1,400

Answer 1

$4,200

Step-by-step explanation:

Skypress Company

$5,600 × 3/4

=$5,600×0.75

= $4,200

Therefore the revenue reported from this transaction during 2013 would be $4,200