Transaction 8 - deposit is called unearned revenue An asset account(cash increases and is debited for $270 and a liability account(unearned revenue

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Transaction 8 : On April 20, Mr. Green receives $270 from a customer for six future maintenance  visits. An advance deposit from a customer is an obligation to perform work in the future. It is a  liability until the work is performed, at which time it becomes revenue. Therefore, the advance 
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Unformatted text preview: deposit is called unearned revenue. An asset account (cash) increases and is debited for $270, and a liability account (unearned revenue) increases and is credited for $270....
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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