[molly111]

If $1,605 was received in January for services performed in January, what was he balance in unearned revenue at 12/31/09
For Jan 31,10 Service Revenue $2,027 and unearned revenue $787

[morgaine300]

There is something wrong here. Either you haven't included all the information, or are quoting something incorrectly from the problem or something.

If you performed $1605 in January, then you've earned all of that. If you've received the same $1605, then you would have no recievables and no unearned. (i.e. there's no accrual or deferral in that).

I don't understand what the 2027 and 787 are. If that's info from the problem, then it doesn't make sense. If that's your answer to the question, then you've given insufficient information to figure it out. The 787 would be coming from some unknown place.

[molly111]

If $1,605 was received in January for services performed in January, what was the balance in Unearned Revenue at December 31, 2009. What was given to me was a partial adjust balance for a company for January 31, 2010, their Revenue Service is $2,027 and Unearned Revenue was $787 for the month of January.

[morgaine300]

PLEASE post follow-ups in the same thread. No one is going to know what this post is referring to. I've moved it where it belongs. (Same problem=same thread. New problem=new thread.)

OK, I missed the December date in there - there are problems that like to work backwards, but that's a little more than I expected and therefore it didn't register. (This isn't very nice to give to a beginning student.)

Let's start with the revenue account. There's a total in there of 2027 once adjusted. You know how much of that came from revenues earned and received in January. So where does the rest have to come from, and how much?

[molly111]

Hi, this is my first accounting class, so total confused, what I did was took the total revenue $2,027+ $1,605(revenue for Jan.)=$3,632 then subtracted that from the unearned revenue $787.= $2,845 for unearned revenue in 12/31/09 is this correct?

[morgaine300]

You really think I'm going to actually answer your question again when all you know how to do is dump negs on me? You've got to be kidding.

[molly111]

morgaine300 grow up