A company is just finishing its second year of operations and at October 31, 2005 shows an unadjusted trial balance with the following amounts:

Consulting Fees Earned $157,300

It was discovered that $3,000 of the balance in the Consulting Fees Earned account was for services to be performed in November.

After that, it was found that accrued fees at the year-end ( Oct. 31 ) totalled $2,100.

How should I calculate and adjust that unadjusted entry?


Thank you

Paula

Net income 157300
Less: unearned consulting fees 3000
Accrued expense 2100
Adjusted income 152200

3,000 in revenue should be unearned.
Dr. Revenue 3,000
Cr. Unearned Revenue 3,000

Accrued fees….
Dr. Expense 2,100
Cr. AP 2,100