I am doing a accounting software class and needed to set up my own accounts and not use the ones given in peachtree. I have a list of transactions and one of them is a retainer received for 500 and the work is expected to be completed within the month(and then it is) do I need to set up an unearned revenue liability account for this even though it is work completed two weeks later?
My next question is about hand money for a real estate transation for a client. This is not at any time my money and it does not specify if the check is written to me or my client. I don't know if this is something that I have to deposit and if so what would be the account to use? Is it a debit to my savings account and then one to some type of liability account or is it to a special account that needs to be set up for this type of thing. These transactions given by the professor are not very specific. If anyone can help I would really appreciate it!

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Originally Posted by tjm120

I am doing a accounting software class and needed to set up my own accounts and not use the ones given in peachtree. I have a list of transactions and one of them is a retainer recieved for 500 and the work is expected to be completed within the month(and then it is) do I need to set up an unearned revenue liability account for this even though it is work completed two weeks later?

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That all depends. Is it is a big company, then yes. If a small company, then no.

Setting it up helps to track it, if you don’t really need to track it, then no big deal.

Since this is a homework question, I would set it up, just to be on the safe side.

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Originally Posted by tjm120

My next question is about hand money for a real estate transation for a client. This is not at any time my money and it does not specify if the check is written to me or my client. I don't know if this is something that I have to deposit and if so what would be the account to use? Is it a debit to my savings account and then one to some type of liability account or is it to a special account that needs to be set up for this type of thing. These transactions given by the professor are not very specific. If anyone can help I would really appreciate it!

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Hand money? I don’t quite understand what you are saying here.

Where is this “ hand money” coming from, if not from your or your client?