Prepare adjusting entries for unearned revenues

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: s often occur in regard to: rent magazine subscriptions customer deposits for future service Chapter 3-25 LO 5 LO sale of airline tickets school tuition Prepare adjusting entries for deferrals. Prepare Adjusting Entries for “Unearned Revenues” Adjusting Entries for “Unearned Revenues” Unearned Revenues Company makes an adjusting entry to record the revenue that has been earned and to show the liability that remains. The adjusting entry for unearned revenues results in a decrease (a debit) to a liability account and an increase (a credit) to a revenue account. Chapter 3-26 LO 5 LO Prepare adjusting entries for deferrals. Prepare Adjusting Entries for “Unearned Revenues” Adjusting Entries for “Unearned Revenues” Illustration 3-10 Adjusting entries for unearned revenues Decrease (a debit) to a liability account and Increase (a credit) to a revenue account. Chapter 3-27 LO 5 LO Prepare adjusting entries for deferrals. Prepare Adjusting Entries for “Unearned Revenues” Adjusting Entries for “Unearned Revenues” Example: On Oct. 2nd, Pioneer Advertising received $1,200 from R. Knox On Oct. 2 for services to be completed by December 31. Show the jou...
View Full Document

Ask a homework question - tutors are online