Journal entry worksheet 1 4 The company received $6,300 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed. Note: Enter debits before credits. Transaction General Journal Debit Credit С.
Journal entry worksheet 1 4 The company received $6,300 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed. Note: Enter debits before credits. Transaction General Journal Debit Credit С.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter4: Income Measurement And Accrual Accounting
Section: Chapter Questions
Problem 4.36MCE: Depreciation Expense During 2016, Carter Company acquired three assets with the following costs,...
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Step 1
Originally unearned revenue when given in advance journal entry is
Consulting revenue a/c dr. $6300
Unearned revenue a/c cr. $6300
Unearned revenue when given in advance is a liability and once some portion or whole work is done then this liability gets reduced to that portion of work completed. when a liability gets reduced it is debited.
In the given case it is said that by 31st December, 1/3rd of the consulting work was done. Therefore the revenue is recognised only $2100 ($6300 * 1/3). So the entry is reversed.
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