How would this transaction be reflected on the income statement and balance sheet on December 31?

Chris Gayle, a lawyer, received $72,000 on October 1 to represent a client in real estate negotiations over the next 12 months.

Journal Entries: October 1st $72,000 & December 31st $18,000 (Already solved)

How would this transaction be reflected on the income statement and balance sheet on December 31?

Solutions

Expert Solution

Income statement

December 31

Revenue
Service revenue	18000

Balance sheet

December 31

Current liabilities
Unearned service revenue (72000-18000)	54000

ekkarill92 answered 2 years ago

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