Eaton co. sells major household appliance service contracts for cash. the service contracts are for a one-year, two-year, or three-year period. cash receipts from contracts are credited to unearned service revenue. this account had a balance of $3,800,000 at december 31, 2014 before year-end adjustment. service contract costs are charged as incurred to the service contract expense account, which had a balance of $900,000 at december 31, 2014. service contracts still outstanding at december 31, 2014 expire as follows: during 2015 $960,000 during 2016 1,140,000 during 2017 700,000 what amount should be reported as unearned service revenue in eaton's december 31, 2014 balance sheet?

The amount that Eaton co would report as unearned service revenue in the balance sheet would be $2,800,000.

Explanation:

Unearned service revenue is the cash receipts received from the contracts for which the work or service hasn't been performed yet. This the liability for the Eaton co, and they will debit the cash received and credit the unearned service contract.

For calculating the unearned service revenue , we will add all the outstanding service contracts from all the years.

= $ 960,000 + $1140,000 + $700,000

= $2,800,000

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

d. all of the above are true.