The balance in Unearned Revenues prior to adjustment was $2,750.If the amount still unearned as of the end of the period is $1,100,the adjusting entry needed would be to:
A)debit Cash,$2,750;credit Unearned Service Revenue,$785.
B)debit Unearned Service Revenue,$1,100;credit Service Revenue,$1,100.
C)debit Unearned Service Revenue,$1,650;credit Service Revenue,$1,650.
D)debit Service Revenue,$1,650;credit Unearned Service Revenue,$1,650.

Question

Quizplus · Accepted Answer

The adjusting entry for unearned revenue is to decrease the unearned revenue account and increase the revenue account.

The original balance in Unearned Revenues was $2,750. If the amount still unearned as of the end of the period is $1,100, then the amount earned during the period is $2,750 - $1,100 = $1,650.

Therefore, the adjusting entry needed would be to debit Unearned Service Revenue for $1,650 and credit Service Revenue for $1,650.

Option A is incorrect because it debits cash, which is not necessary in this situation. 
Option B is incorrect because it only records the amount still unearned, but does not account for the amount earned during the period. 
Option D is incorrect because it debits the revenue account instead of crediting it.

The Balance in Unearned Revenues Prior to Adjustment Was $2,750