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    Paula Gomes's Avatar
    Paula Gomes Posts: 6, Reputation: 1
    New Member
    		  
    #1

    Mar 5, 2007, 08:56 AM
    Adjusting entries
    A company is just finishing its second year of operations and at October 31, 2005 shows an unadjusted trial balance with the following amounts:

    Consulting Fees Earned $157,300

    It was discovered that $3,000 of the balance in the Consulting Fees Earned account was for services to be performed in November.

    After that, it was found that accrued fees at the year-end ( Oct. 31 ) totalled $2,100.

    How should I calculate and adjust that unadjusted entry?


    Thank you

    Paula
    bhet's Avatar
    bhet Posts: 77, Reputation: 9
    Junior Member
    		  
    #2

    Mar 6, 2007, 08:02 PM
    Net income 157300
    Less: unearned consulting fees 3000
    Accrued expense 2100
    Adjusted income 152200
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #3

    Mar 6, 2007, 11:34 PM
    3,000 in revenue should be unearned.
    Dr. Revenue 3,000
    Cr. Unearned Revenue 3,000

    Accrued fees….
    Dr. Expense 2,100
    Cr. AP 2,100
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