The Year-End Adjustment to Recognize One Month's Work on the Three-Month

Multiple Choice

The year-end adjustment to recognize one month's work on the three-month contract results in a $2,000 decrease in liabilities (unearned revenue) and an increase in equity (retained earnings due to recognizing revenue) .
The following account balances were drawn from the 2016 financial statements of Grayson Company:

-Based on the above information,what is the balance of Common Stock for Grayson Company?

A) $15,400
B) $19,900
C) $900
D) $20,800