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-   -   Adjusting journal entry (https://www.askmehelpdesk.com/showthread.php?t=269763)

  • Oct 15, 2008, 02:11 PM
    jessval24
    Adjusting journal entry
    $2000 of unearned service revenue is still unearned at Dec 31st do I subtract 2000 from the unearned service revenue on the original balance sheet to get the adjusting entry because its still unearned?
  • Oct 15, 2008, 05:24 PM
    pready

    You Subtract a amount from your beginning Unearned Service Revenue to get to the ending amount of $2,000 in the Unearned Service Revenue Account.

    For example if there is a beginning Unearned Service Revenue Account has $10,000 then you do an $8,000 adjusting entry to reach the ending balance of $2,000 in the Unearned Service Revenue.

    The adjusting entry is:

    Debit Unearned Service Revenue for the Amount.
    Credit Service Revenue for the Amount.
  • Oct 15, 2008, 05:55 PM
    jessval24
    Sooo if the beginning balance for unearned service revenue is 3100. And 2000 is still unearned would u debit unearned service rev for 1100 in the adjusting entry?

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