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

    May 13, 2009, 07:55 AM
    Journalizing a contract?
    I need to journalize the following question but I don't know if it would be entered in accounts receivable or accounts payable or what is it.

    The : On behalf of Music Depot, Lee signed a contract with a local radio station, to provide guest spots for the next three months. The contract requires Music Depot to provide a guest jockey for 80 hrs per month for a monthly fee of 3,600. Any additional hrs beyond 80 will be billed to the radio station at $40 per hr. In accordance with the contract, Lee received $7,200 from the radio station as an advance payment for the first two months.

    HELP!
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    May 15, 2009, 01:21 PM

    Debit Cash and Credit Unearned Service Revenue for the amount received.
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