In: Accounting
its was déterminé that 12000 of the unearned revenue
consulting fees had not been yet earned
-its was discovered that 6000 of the balance in consulting fees
earned accounts was for.service to be performed in the next
month
-adjusted trial balance :uneared revenue 13 160
revenue 314600
probleme 2
the balance in prepaid insurance account represent the remaining
balance of the year policy purchased on April
prepaid insurance :9350
what is the journal entries for this two transactions
Solution 1:
Adjusting Journal Entries | |||
Event | Particulars | Debit | Credit |
1 | Unearned revenue Dr ($13,160 - $12,000) | $1,160.00 | |
To Consulting Fees earned | $1,160.00 | ||
(To record revenue earned) | |||
2 | Consulting fees earned Dr | $6,000.00 | |
To Unearned revenue | $6,000.00 | ||
(To record adjusting entry for unearned revenue) |
Solution 2:
Adjusting Journal Entries | |||
Event | Particulars | Debit | Credit |
1 | Insurance expense Dr | $7,012.50 | |
To Prepaid Insurance ($9,350/12*9) | $7,012.50 | ||
(To record insurance expense) |