How much will be in the unearned revenue account

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Q1. On January 1, 2021, Umbrella Insurance Company has collected $24,000 for multiple two-year insurance premiums and recorded the funds in Unearned Revenue. Umbrella records insurance revenue on a monthly basis. How much will be in the Unearned Revenue account on November 30, 2021?

$2,000

None of these

$13,000

$22,000

$11,000

Q2. Prairie Company had sales of $1,500,000. Estimated warranty costs are 1.5% of sales. Work performed under warranties during the period actually cost $8,750. The entry to record the warranty liability includes:

a debit to Warranty Expense for $31,250.

a debit to Warranty Expense for $22,500.

a debit to Warranty Expense for $8,750.

a debit to Warranty Expense for $16,250.

none of these

Reference no: EM133031449

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