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    andyrod's Avatar
    andyrod Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 25, 2011, 12:29 PM
    Accounting problem help!
    Have to journalize this transaction in accounting class for the month of November

    Received $500 in total for 4 monthly lessons that began on November 31

    I think is like this:

    Debit cash 500 and credit unearend revenue 500
    Is that OK?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Feb 25, 2011, 12:37 PM

    If you receive payment before the lessons started your journal entry is correct.

    When you actually provide the lessons the journal entry will be:
    Debit Unearned Service Revenue for $500 * 1/4 if provided one month of lessons 2/4 if two lessons, and so on.
    Credit Service Revenue for the amount.
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