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

Prepare a narrative describing the transaction cycle process, Assignment: ...

Assignment: This assignment will be to describe and document the internal controls over a transaction cycle at a local business. A transaction cycle could be the sales process,

The accounting records of nu-tonics inc., The accounting records of Nu-toni...

The accounting records of Nu-tonics Inc., include the following information for the year ended December 31, 2013:  Materials Inventory as at 1 January 2013 $ 20,000  Materials

Balance Sheet, can you show me a sample balance sheet with retained earning...

can you show me a sample balance sheet with retained earnings included?

Comprehensive problem in trial balance, Comprehensive Problem in Trial Bala...

Comprehensive Problem in Trial Balance Cash $ 26,470 A/R   14,222 Office Supplies    4,298 Prepaid Insurance   23,137 Equipment 131,495 A/D - Equipment   $19,096 Accounts P

Sales discounts and cash receipts journal, SALES DISCOUNTS AND CASH RECEI...

SALES DISCOUNTS AND CASH RECEIPTS JOURNAL SALES DISCOUNTS Sales discount is recorded as a reduction in sales revenue.  CASH RECEIPTS JOURNAL Source documents: ca

How to prepare the worksheet, How to prepare the worksheet  Look carefu...

How to prepare the worksheet  Look carefully at worksheet in the text. Remember that it is an informal working paper used to prepare financial statements. Place transparenci

Show transactions affecting the income statement, Q. Show Transactions affe...

Q. Show Transactions affecting the income statement? To continue to exist a business must be profitable. This signifies that the revenues earned by providing goods and services

What is differences in access to financial information, What is differences...

What is differences in access to financial information Distinction between the two areas of accounting reflects, to some extent, differences in access to financial information.

Misstatement of accounting information, Q. Misstatement of accounting infor...

Q. Misstatement of accounting information? The FASB describes materiality as the magnitude of an omission or misstatement of accounting information that in the light of surroun

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