The adjusted trial balance at January 31 shows Unearned Revenue $550 and Revenue Expense $1800. If $1,500 was received in January for services performed in January, what was the balance in Unearned Revenue at December 31, 2007?
I think the answer is $300 but I am not certain. It looks too easy. Please, help me with this question.

The adjusted trial balance at January 31 shows Unearned Revenue $550 and Revenue Expense $1800.

I assume you mean revenue of $1800. There's no such thing as "revenue expense." That's a contradiction.


If $1,500 was received in January for services performed in January,

If in January you both receive and perform the services (earn) $1500, that affects the unearned account not at all. If you received it and earned it in the same month, it's not unearned.

Of the $1800 of revenue recognized in January, $1500 of it was paid in January. So $300 of it was earned that had previously been unearned. So that came out of the unearned account and went into the revenue. You're right that it was too easy. Cause you forgot the part about there being $550 still in that unearned account. If there's still $550 in it, after $300 was taken out of it, how much was there to begin with?

Thank you!