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-   -   How would I journalize this transaction. (https://www.askmehelpdesk.com/showthread.php?t=263852)

  • Sep 25, 2008, 10:51 AM
    dip1omat
    How would I journalize this transaction.
    Art services performed for which payment has been received in advance total $1,400. How would this be journalized?
  • Sep 25, 2008, 12:05 PM
    AdamUTsel

    Dr. Unearned revenue 1,400
    Cr. Art Service Revenue 1,400
  • Sep 25, 2008, 12:06 PM
    arod914

    Cash 1400
    Unearned Income 1400
  • Sep 25, 2008, 12:07 PM
    AdamUTsel
    Quote:
    Originally Posted by arod914 View Post
    Cash 1400
    Unearned Income 1400
    The statement notes that services were performed (so revenue should be recognized now) and payments had already been received (cash already booked prior against an unearned revenue account).
  • Sep 25, 2008, 12:14 PM
    arod914
    Quote:
    Originally Posted by AdamUTsel View Post
    The statement notes that services were performed (so revenue should be recognized now) and payments had already been received (cash already booked prior against an unearned revenue account).
    You are absolutely right... I journalized what would have been the initial entry. Sorry.

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