A client pays you today with a check for services to be preformed over the next 6 months. How do you journalize this entry?
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A client pays you today with a check for services to be preformed over the next 6 months. How do you journalize this entry?
Debit Cash for the amount of the check
Credit Unearned Service Revenue (Liability Account) for the amount of the check.
After the services are provided the journal entry will be:
Debit Unearned Service Revenue for the amount
Credit Service Revenue for the amount
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