Question

In: Accounting

its was déterminé that 12000 of the unearned revenue consulting fees had not been yet earned...

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

Solutions

Expert Solution

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)

ekkarill92 answered 1 year ago
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