Ask Experts Questions for FREE Help !
Ask
    lyfe2lrn's Avatar
    lyfe2lrn Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Dec 9, 2010, 12:03 PM
    Unearned Revenue Adjustments
    Trial balance shows a $25,000 credit in the Unearned Revenue account as of January 1. The following adjustment entry is to show the $25,000 of Unearned Revenue was earned as of January 31. How do I make the adjustment?
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
    Ultra Member
    		  
    #2

    Dec 9, 2010, 01:06 PM

    The original entry to record unearned income would have been a credit to Unearned Revenue, as it is a liability - you have collected cash but still owe a service.

    Once it becomes earned, you debit Unearned Revenue (to zero it out) and credit Revenue.
    lyfe2lrn's Avatar
    lyfe2lrn Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Dec 11, 2010, 06:58 PM
    I truly appreciate your help, thank you.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Unearned Service Revenue STill Unearned. [ 5 Answers ]

If the Trial balance says Unearned Service Revenue Cr. 12,560 The adjusting entry says Unearned Service Revenue still unearned, $800, how do I enter this?

Unearned service revenue still unearned is it a debit or credit [ 2 Answers ]

Prepaid rent still in force $400 but on the trial balance sheet it states prepaid rent 2,700 do I subtract -debit 400 or credit 400

Unearned revenue [ 5 Answers ]

I would really appreciate some help regarding this problem: Projected amount of unearned revenue on the forecast balance sheet for 2010 is $105,000. Contracts outstanding at the end of 2010: Service Contract 1, dated October 1, 2010; service for six months $42,000 Service Contract 2, dated...

Unearned Service Revenue still Unearned journal Entry [ 1 Answers ]

I have unearned service revenue still unearned in the amount of 6,500 although my trial balance reflect $8,900. To make a journal entry would this be correct. Unearned Service Revenue 2400 Service Revenue 2400

Unearned Revenue Still Unearned [ 1 Answers ]

I have to make an adjusting entry for this: Unearned Service Revenue still Unearned, $800 There is a previous credit balance of 5,300. At first I thought there was no entry, but then when I started to do the income statement the answer I'm suppose to have is not correct with the answer I...

View more questions Search