Calculation On 1 August 2019 of the current year, Jamie Simmons received RM5,400 for legal services...

Calculation

On 1 August 2019 of the current year, Jamie Simmons received RM5,400 for legal services to be performed evenly throughout the next six months. Calculate the Unearned Revenue (Legal Fees) on 31 December 2019.

Solutions

Expert Solution

	CALCULTION OF MONTHLY LEGAL FFES
Working Notes:		Amount in RM
	Total Amount received	5,400
	Divide By	"/" By
	No of Months Payment	6
	Monthl Revenue	900


Solution:
	Calculation of Unearned Revenue as on December 31, 2019

	Total Unearned Revenue as on on 1st August 2019 (A)	5,400

	Less: Revenue Earned from August to December 31 in 5 Months

	Earned Revenue =	Monthly Revenue	"X"	No. of Months
	Earned Revenue =	900	"X"	5
	Earned Revenue (B) =	4,500


	Unearned Revenue as on December 31 2019 = Total Unearned Revenue (A) - Earned Revenue (B)
	Unearned Revenue as on December 31 2019 = 5,400 - 4,500
	Unearned Revenue as on December 31 2019 = 900

	Answer = Unearned Revenue = 900

ekkarill92 answered 1 year ago

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