Adjusting Entries Practice Problem Unearned Service Revenue Solution

 

Account balances as of September 30, 2000:
	Cleaning Service Revenue - credit	$90,200
	Unearned Service Revenue - debit	3,670

 

Required:	Write the adjusting journal entry for the month ended September 30 based on the following information:
	As of September 30, work on $12,500 of cleaning services paid for in advance had not been completed.
Solution:	Purpose: To adjust unearned service revenue
	Accounts:	Balance Sheet:        Unearned Service Revenue
		Income statement:  Cleaning Service Revenue
	Calculation:	Desired balance in Unearned Service Revenue	$ 12,500
		- Current balance in Unearned Service Revenue	(3,670)
		Cleaning Service Revenue	$ 8,830

	Date	Account Titles	Debits	Credits
	Sept. 30	Cleaning Service Revenue	$8,830.00
		Unearned Service Revenue		8,830.00
		To record unearned service revenues.

 

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