Example of unearned service fees, Accounting Basics

Assignment Help:

Q. Example of Unearned service fees?

Unearned service fees On December 7 Micro Train Company received USD 4500 from a customer in payment for future training services. The firm enters the following journal entry

2443_Unearned service fees.png


The two T-accounts recitation to training fees are Unearned Service Fees a liability and Service Revenue. These accounts shows as follows on 2010 December 31 before adjustment

1613_Unearned service fees1.png


The balance in the Unearned Service Fees liability account set up when Micro Train received the cash will be converted into revenue as the company performs the training services. Previous to Micro Train prepares its financial statements it must make an adjusting entry to transfer the amount of the services performed by the company from a liability account to a revenue account.


Related Discussions:- Example of unearned service fees

Explain about statement of cash flows, Q. Explain about statement of cash f...

Q. Explain about statement of cash flows? Retained earnings usually consist of the accumulated net income of the corporation minus dividends distributed to stockholders. We exa

The weighted average number of common shares, On December 31, 2003, Jamfest...

On December 31, 2003, Jamfest Travel Inc. had 450,000 shares of no-par common stock issued and outstanding. All shares were sold for $7.50. On June 30, 2004, the firm issued an add

Audit Reports, Why it is important for independent auditor to be a member o...

Why it is important for independent auditor to be a member of a professional body?

Transponders?, A user buys a new transponder for $20. What debit and credi...

A user buys a new transponder for $20. What debit and credit entries would need to be made?

The process of adjusting the bond interest expense account, The process of ...

The process of adjusting the bond interest expense account for any premium or discount is called amortization of the premium or discount

Determine about the purchasing procedures, Determine the Purchasing Procedu...

Determine the Purchasing Procedures Alarge company would use a "purchasing agent" who heads purchasing department. Small companies would use manager/owner, etc. Seller recei

General accepted accounting principles, Q. General accepted accounting prin...

Q. General accepted accounting principles? In general accepted accounting principles (GAAP) set forth standards or methods for presenting financial accounting information. A

Amount of dividends, Houston Corporation has the following stock outstandin...

Houston Corporation has the following stock outstanding:     In 2012, Houston paid $330,000 in dividends. No dividends were paid in 2011 or 2010. Required : a)

Funds flow analysis, Funds Flow Analysis :  This study is occasionally c...

Funds Flow Analysis :  This study is occasionally called as 'Statement of alter in Financial Position".  Beneath this analysis, a declaration is prepared which give details the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd