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On January 1, a customer paid X company $40,000 in advance for 4times cleaning services from January to April. Once in each month.At the time of the cash receipt, the $40,000 was recorded asDeferred Revenue. What will be the result of the adjusting entry onJanuary 31?

A. a balance of $10,000 in the Deferred Revenue account on theBalance Sheet

B. revenue of $10,000 reported on the Income Statement

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Keith Leannon
Keith LeannonLv2
28 Sep 2019

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On January 1, 20X1 CleanCo I did revenue for a $4000 prepaymentit received from a customer for maintenance services to be providedover the next two years.

And adjusting entry is necessary as of December 31 20x1 toproperly reflect .....

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ABC Company has not yet recorded year-end adjusting entries related to the following two items:
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(2) The unearned revenue relates to a $27,000 payment from a customer received on May 1, 2008for work to be performed each month for the next 18 months.
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