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    hhswrestler189's Avatar
    hhswrestler189 Posts: 1, Reputation: 1
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    #1

    Oct 13, 2009, 05:58 PM
    Accounting Adjusting entry
    How would I make an adjusting entry with this question?

    Dues received in advance from members $8,900
    The "Dues Received in Advance" of $8,900 are still unearned as of 12-31
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    Oct 13, 2009, 06:05 PM

    DEBIT Dues Received in Advance a/c $8,900
    CREDIT Dues Received account----------$8,900

    Being dues unearned received in advance.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Oct 15, 2009, 01:09 AM

    I think there's been a misinterpretation there.

    "Dues received in advance from members $8,900
    The "Dues Received in Advance" of $8,900 are still unearned as of 12-31"

    Those two sentences almost sound like a contradiction. One is saying $8900 is how much was received in advance. The other is stating what is still unearned. (i.e. the balance to remain in the unearned.) The only way that makes sense is if everything paid in advance is still unearned and nothing was earned yet.

    If that's true, there is no adjusting entry.

    However, I'm not sure I quite trust it. And that is because students like to paraphrase things that problems say, based on what they think it says. But changing one little word from what the problem says can totally change the meaning. And it just seems a bit on the odd side.

    If that is an exact quote, there is no entry. If that is not an exact quote, we'd have to get one in order to know how to do it properly.
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