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Paula Gomes
Mar 5, 2007, 08:56 AM
A company is just finishing its second year of operations and at October 31, 2005 shows an unadjusted trial balance with the following amounts:

Consulting Fees Earned $157,300

It was discovered that $3,000 of the balance in the Consulting Fees Earned account was for services to be performed in November.

After that, it was found that accrued fees at the year-end ( Oct. 31 ) totalled $2,100.

How should I calculate and adjust that unadjusted entry?


Thank you

Paula

bhet
Mar 6, 2007, 08:02 PM
Net income 157300
Less: unearned consulting fees 3000
Accrued expense 2100
Adjusted income 152200

CaptainForest
Mar 6, 2007, 11:34 PM
3,000 in revenue should be unearned.
Dr. Revenue 3,000
Cr. Unearned Revenue 3,000

Accrued fees….
Dr. Expense 2,100
Cr. AP 2,100