The Unearned Revenue account of Rory Incorporated began 2018 with a normal balance of $ 4 comma 000 and ended 2018 with a normal balance of $ 10 comma 000. During 2018 , the Unearned Revenue account was credited for $ 25 comma 000 that Rory will earn later. Based on these facts, how much revenue did Rory earn in 2018 ? A. $ 31 comma 000 B. $ 25 comma 000 C. $ 19 comma 000 D. $0

C. $ 19.000

Explanation:

The unearned revenue account is a liability account for collections received for which services have not been performed.

The Revenue earned is as follows:

Opening balance (Unearned Revenue) + Additions to Unearned Revenue - Closing Balance (Unearned Revenue)

$ 4,000 + $ 25,000 - $ 10,000 = $ 19,000

so the revenue earned is $ 19,000

This can also be explained by the amounts credited to Unearned Revenue account adjusted for changes in Unearned Revenue balance for the year.

$ 25,000 - $ 6,000 (Increase in Unearned Revenue balance over the period.)