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-   -   Adjusting for earned revenues (https://www.askmehelpdesk.com/showthread.php?t=508182)

  • Sep 16, 2010, 02:29 PM
    DeaconDavis
    Adjusting for earned revenues
    Fortune Co. receives $30,000 cash in advance for four months of legal services on October 1, 2011, and records it by debiting Cash and crediting Unearned Revenue, both for $30,000. It is now December 31, 2011, and Fortune has provided legal services as planned. What adjusting entry should Fortune make to account for the work performed from October 1 through December 31, 2011?
  • Sep 16, 2010, 06:31 PM
    pready

    You need to calculate the earnings that is earned, then the journal entry will be: debit Unearned Revenue for the amount earned and Credit Service Revenue(or Legal Services Revenue) for the amount.

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