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cruizinchik
Feb 27, 2007, 02:28 PM
I have to make an adjusting entry for this:

Unearned Service Revenue still Unearned, $800

There is a previous credit balance of 5,300. At first I thought there was no entry, but then when I started to do the income statement the answer I'm suppose to have is not correct with the answer I have. I need help, I've been working on this question since yesterday and I do not get it! Any help or insight would be greatly appreciated thanks!

CaptainForest
Feb 28, 2007, 02:26 AM
So the balance is 5,300.

They are telling you it should only be 800.

Therefore, you need to decrease the account by 5,300-800 = 4,500

Dr. Unearned Service Revenue 4,500
Cr. Service Revenue 4,500