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-   -   Calculating Unearned Revenue (Adjusting Entries) (https://www.askmehelpdesk.com/showthread.php?t=654336)

  • Apr 25, 2012, 10:54 AM
    dwolff
    Calculating Unearned Revenue (Adjusting Entries)
    On July 1, 2012, Gamecock receives $5,800 from a customer for advertising services to be given evenly over the next 10 months. Gamecock credits Unearned Revenue. How do I calculate the unearned revenue for the adjusting entry?
  • Apr 25, 2012, 11:47 AM
    pready
    Take your amount received of $5,800 times number of months of service provided divided by 10 months to get your adjusting entry amount. Your adjusting entry will be:
    Debit Unearned Revenue for the amount calculated
    Credit Earned Revenue for the amont calculated.

    To get the remaining balance in Unearned revenue you simply take your beginning amount of $5,800 minus the amount debited your to Unearned Revenue account.

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