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    golfsforme's Avatar
    golfsforme Posts: 1, Reputation: 1
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    #1

    Jun 5, 2008, 12:20 PM
    Post closing balance sheet
    Do you close unearned revenue to the income summary?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jun 5, 2008, 08:49 PM
    No. You close revenues, expenses and drawing/dividends. Unearned revenues isn't earned, and therefore isn't revenue. It's a liability. Someone has paid the company in advance for something and they now have an obligation to do whatever work they do. Liabilities don't close.

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