Asked by Jackson Brown on May 01, 2024
Verified
The balance in the unearned fees account, before adjustment at the end of the year, is $10,250. Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $3,125.
Unearned Fees
Income received by a company for services to be provided in the future; recognized as a liability until the services are rendered.
Adjusting Entry
A financial record created at the conclusion of an accounting cycle to distribute income and costs to the timeframe in which they were genuinely incurred.
- Present the capacity to engineer journal entries for typical types of adjusting entries, covering prepayments, accruals, and depreciation.
- Determine and note variations for revenues that are either unearned or have been accrued.
Verified Answer
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Learning Objectives
- Present the capacity to engineer journal entries for typical types of adjusting entries, covering prepayments, accruals, and depreciation.
- Determine and note variations for revenues that are either unearned or have been accrued.