View Full Version : How would I journalize this transaction.
dip1omat
Sep 25, 2008, 10:51 AM
Art services performed for which payment has been received in advance total $1,400. How would this be journalized?
AdamUTsel
Sep 25, 2008, 12:05 PM
Dr. Unearned revenue 1,400
Cr. Art Service Revenue 1,400
arod914
Sep 25, 2008, 12:06 PM
Cash 1400
Unearned Income 1400
AdamUTsel
Sep 25, 2008, 12:07 PM
Cash 1400
Unearned Income 1400
The statement notes that services were performed (so revenue should be recognized now) and payments had already been received (cash already booked prior against an unearned revenue account).
arod914
Sep 25, 2008, 12:14 PM
The statement notes that services were performed (so revenue should be recognized now) and payments had already been received (cash already booked prior against an unearned revenue account).
You are absolutely right... I journalized what would have been the initial entry. Sorry.