A local advertising company sells advertising space for $260 each. The company sold 800 units on May 1, 2012, and each one is valid for 4 months.

Required:
Write the entry for:
a) The sale of the advertising space
b) The entry to be recorded on July 31, the company's year end

May1 to record the sale of advetising space
Jul31 to recognize revenue earned for the month.

Thanks a lot.

Your accounts to record the adjertising space will be; Unearned Revenue and Cash.

To record the earned revenue your accounts will be; Earned Revenue and Unearned Revenue.