Paramount Event Planning Services collects fees from its cus

Paramount Event Planning Services collects fees from its customers in advance. On January 1, 2017, the balance of its Unearned Revenue account was $3,000 (CR). During January and February, the company collected $4,000 and $600 as advance fees

During the two-month period, it performed services of $5,500 related to the deferred revenue. What is the balance in Unearned Revenue at the end of February?
A) debit balance of $3,000
B) credit balance of $3,000
C) debit balance of $2,100
D) credit balance of $2,100

ANSWER

D .Beginning balance in Unearned Revenue $3,000 Credit
Unearned Revenue in January 4,000 Credit
Unearned Revenue in February 600 Credit
7,600 Credit
Less: service rendered in January and February (5,500 ) Debit
Ending balance in Unearned Revenue $2,100 Credit