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

    Sep 11, 2008, 04:17 PM
    Adjusting for unearned revenues
    Tao receives $10,000 cash in advance for 4 months of legal services on October 1, 2008, and records it by debiting cash and crediting unearned revenue both for $10,000. It is now December 31, 2008, and Tao has provided legal services as planned. What adjusting entry shoould Tao maketo account for the work performed from October 1 through December 31, 2008?
    ashley568's Avatar
    ashley568 Posts: 34, Reputation: 3
    Junior Member
    		  
    #2

    Sep 11, 2008, 08:32 PM
    Quote Originally Posted by senpic
    Tao receives $10,000 cash in advance for 4 months of legal services on October 1, 2008, and records it by debiting cash and crediting unearned revenue both for $10,000. It is now December 31, 2008, and Tao has provided legal services as planned. What adjusting entry shoould Tao maketo account for the work performed from October 1 through December 31, 2008?
    If he has 10,000 it needs to be equally spread over the 4 months. Oct-dec is 3 months. If crediting unearned rev increases it than debiting will decrease it and the then you need to credit the revenue account since the work was performed.
    AdamUTsel's Avatar
    AdamUTsel Posts: 100, Reputation: 2
    Junior Member
    		  
    #3

    Sep 12, 2008, 08:46 AM
    DR. Unearned revenue 7500
    CR. Revenue 7500
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!

Recording Prepaid expenses and Unearned Revenues [ 2 Answers ]

Hello- This is my first time taking Accounting and I'm having a few problems with some of my entries. If anyone could look at my first entry and help it would be greatly appreciated. I have to do the following: Prepare entries for the transactions under the method that records prepaid...

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?

Adjusting entries for unearned revenue? [ 2 Answers ]

I have this hw question regarding unearned revenue. There's 2 transactions: Sept 1 Sold 1800 one year subscriptions for cash at 12 each. Sept 30 Sold 400 more one year subscriptions for cash at 12 each. These subscriptions begin on Oct 1. I'm supposed to adjust and recognized the revenue...

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