Solution of the first two options are given here.
a.
| No adjusting entry is needed, because although the revenue was collected in advance on September 1, it has all been earned prior to year-end. Thus, inclusion of the entire amount in revenue of the period is correct. |
|
|
b.
| Three months’ revenue was collected in advance on December 1 and was credited to an unearned revenue account. At December 31, an adjusting entry is needed to recognize that one-third of this advance payment that has now been earned as revenue. The effects of this adjusting entry will be to reduce a liability (unearned revenue) and increase revenue recognized as earned in the period. Of course, recognizing revenue also increases owners’ equity. |
|
|
|
|
Amazing blog you shared blog admin . Every detail about accounting is really meaningful and satisfactory for those who usually search for this type of correct and brief information .
ReplyDeleteKeep blogging....
bookkeeping services in barking
Ajman Media City is one of the fastest growing Free zone in the UAE. It is one of the most competitive business centers with cost-effective business setup services and world-class infrastructure.
ReplyDeleteAjman Media City
Ajman Media City Free Zone
ajman media city free zone company incorporation
ajman media city free zone company registration
ajman media city free zone license registration
ajman media city free zone company formation
ajman media city free zone license formation
ajman media city free zone license incorporation
Ajman Media City Free Zone
Really useful information. Thank you so much for sharing.It will help everyone.Keep Post
ReplyDeleteAccounting service in London,,
This is really interesting, You are a very skilled blogger.
ReplyDeleteI've joined your feed and look forward to seeking more of your wonderful post.
Accountants in walthamstow
Impressive it is. Black magic specialist in Australia
ReplyDeleteonline bookeeping software deals with financial data, classifying and generating reports, thereby providing a support system for your business. It also supports SMEs with accounting, timely reporting and VAT return filing.
ReplyDeleteExcellent post and thanks a lot for sharing this kind of information Thank you so much for posting this important information. This is great.
ReplyDeletebookkeeping service in barking
Great articles, first of all Thanks for writing such lovely Post! Earlier I thought that posts are the only most important thing on any blog
ReplyDeletevat return service In london