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

    Sep 16, 2010, 02:29 PM
    Adjusting for earned revenues
    Fortune Co. receives $30,000 cash in advance for four months of legal services on October 1, 2011, and records it by debiting Cash and crediting Unearned Revenue, both for $30,000. It is now December 31, 2011, and Fortune has provided legal services as planned. What adjusting entry should Fortune make to account for the work performed from October 1 through December 31, 2011?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Sep 16, 2010, 06:31 PM

    You need to calculate the earnings that is earned, then the journal entry will be: debit Unearned Revenue for the amount earned and Credit Service Revenue(or Legal Services Revenue) for the amount.
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