Unearned revenue refers to payments for goods or services that are made to a company before their actual delivery to the buyer. The company is now obliged to fulfilled its commitment as per schedule.
At the beginning of 2011, Jones Inc. had a normal balance of $4000 in their unearned revenue account. During the year, the account was credited with $19000. At the end of the year, the normal balance in the account was $18000. An amount equal to the revenue actually earned is deducted from the account during the year.
If the revenue earned by Jones Inc. in 2011 was X, 4000 + 19000 - X = 18000
=> X = 4000 + 19000 - 18000 = 5000
The revenue earned by Jones Inc. in 2011 was $5000.