[cuteguy100]

1. An analysis of lee's service contracts with customers shows that $8,300 of the amount customers have prepaid remains unearned.
And balance in adjusted trial balance for unearned service fees is 20000 credit.

2. Lee has earned but unrecorded revenue for $10,000 for services provided to a customer who will pay for the work on January 24. At that time, the customer will also pay $3,100 for services Leeward will perform in early January.balance in service revenue earned is 267000 credit.
Entries had to be done for dec 31.

[CaptainForest]

What do YOU think the answers are?

[cuteguy100]

1. Unearned revenue dr 11700
Service revenue cr 11700

2. service revenue 6900
Accounts receivable 6900

[CaptainForest]

Your solution to problem 1 – correct

Solution to Problem 2:

Lee has earned 10,000 but he doesn't get paid till next year, that is irrelevant.

Dr. AR 10,000
Cr. Revenue 10,000

As for the 3,100 he will get next year for next years work…that does NOT concern us this year.

[cuteguy100]

Thanks for the help.