Question: The Einstein Cable Company collects all service revenue in advance
The Einstein Cable Company collects all service revenue in advance. Einstein showed a $16,825 liability on its June 30, 2010, balance sheet for unearned service revenue. During the following fiscal year, customers paid $85,000 for future services, and the income statement for the year ended June 30, 2011, reported service revenue of $75,850. What amount for the liability unearned service revenue will appear on the balance sheet at June 30, 2011?
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