At month end, August 31, 2009, the Unearned Consulting Revenue account had an unadjusted balance of $7,400. $3,000 of this consulting has been done. Prepare the month-end adjusting entry.

I am having trouble calculating this out, I am not sure how to do the adjusting entry when some of the consulting has been done, if you can I help that would be great
Thanks

Answer

The adjusting entry for this would be


Unearned Consulting R.Ac Debit 3000
Consulting Revenue Account Credit 3000

Now the ending balance at Unearned Consulting R.Ac Debit at 31 August 2009 would be 4400