Problem
On the last day of December 2013, Smith & Sons entered into a transaction that resulted in a receipt of $54,000 cash in advance related to services that will be provided during January 2014. During December of 2013, the company also performed $32,000 of services which were neither billed nor paid. Prior to December adjustments and before these two transactions were recorded, the company's trial balance showed service revenue of $800,000 at December 31, 2013. There are no other prepaid services yet to be delivered. If Smith & Sons makes the appropriate adjusting entry, how much will service revenue will be reflected on the December 31, 2013 income statement?