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    dip1omat's Avatar
    dip1omat Posts: 1, Reputation: 1
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    #1

    Sep 25, 2008, 10:51 AM
    How would I journalize this transaction.
    Art services performed for which payment has been received in advance total $1,400. How would this be journalized?
    AdamUTsel's Avatar
    AdamUTsel Posts: 100, Reputation: 2
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    #2

    Sep 25, 2008, 12:05 PM

    Dr. Unearned revenue 1,400
    Cr. Art Service Revenue 1,400
    arod914's Avatar
    arod914 Posts: 3, Reputation: 1
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    #3

    Sep 25, 2008, 12:06 PM

    Cash 1400
    Unearned Income 1400
    AdamUTsel's Avatar
    AdamUTsel Posts: 100, Reputation: 2
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    #4

    Sep 25, 2008, 12:07 PM
    Quote Originally Posted by arod914 View Post
    Cash 1400
    Unearned Income 1400
    The statement notes that services were performed (so revenue should be recognized now) and payments had already been received (cash already booked prior against an unearned revenue account).
    arod914's Avatar
    arod914 Posts: 3, Reputation: 1
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    #5

    Sep 25, 2008, 12:14 PM
    Quote Originally Posted by AdamUTsel View Post
    The statement notes that services were performed (so revenue should be recognized now) and payments had already been received (cash already booked prior against an unearned revenue account).
    You are absolutely right... I journalized what would have been the initial entry. Sorry.
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