The follo0wing are the balances in the acocunts for Joan Miller Advertising Agency as of January 31, 2001
Fees Receivable Debit $200
Wages Payable Credit $180


During the month of Feb, the agency engaged in the following transactions:

Feb 8 . Completed the series of advertisements for Marsh Tires Company that began on January 31, and billed Marsh Tire Company for the total services performed, including the accrued revenues that hade been recongized in Jan of 200(see fees receivable). The total bill is $800.

Feb 9 Paid the secretary for two weeks' wages, $600, $180 of which had been accrued in January.

How should I post these entries? Please help! Thank You!

For the two Entries to construct the journal entries start with what you know like the accounts and amounts then the you can figure the rest out.

1. Feb 8 - Total Service performed = $800, Unearned Service Revenue = $200.

Debit Fees Receivable or Accounts Receivable for X
Debit Unearned Service Revenue for 200 (Accrued Revenues)
Credit Service Revenue for 800

X = 800 - 200; X = 600

2. Feb 9 - Wages paid = $600, Wages Payable = $180

Debit Wage Expense for X
Debit Wages Payable for 180
Credit Cash for 600

X= 600 - 180; X = 420

Quote:

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Originally Posted by pready

For the two Entries to construct the journal entries start with what you know like the accounts and amounts then the you can figure the rest out.

1. Feb 8 - Total Service performed = $800, Unearned Service Revenue = $200.

Debit Fees Receivable or Accounts Receivable for X
Debit Unearned Service Revenue for 200 (Accrued Revenues)
Credit Service Revenue for 800

X = 800 - 200; X = 600

2. Feb 9 - Wages paid = $600, Wages Payable = $180

Debit Wage Expense for X
Debit Wages Payable for 180
Credit Cash for 600

X= 600 - 180; X = 420

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Hi for the first entry my friend told me to

Dr Accounts receivable $800
Cr Fees receivable $200
Cr Services revenue $600

But I am not sure if she is right though could you please explain to me?

Thank you

Accrued Revenues are revenues that have been earned but not received.

So your friend's entry looks correct.