Determine the amount of earned fees

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Reference no: EM131528274

Question: Corbel Company experienced the following events and transactions during July. July 1 Received $2,000 cash in advance of performing work for Beth Oker. 6 Received $8,400 cash in advance of performing work for Lisa Poe. 12 Completed the job for Oker. 18 Received $7,500 cash in advance of performing work for Henry Coe. 27 Completed the job for Poe. 31 None of the work for Coe has been performed.

a. Prepare journal entries (including any adjusting entries as of the end of the month) to record these events using the procedure of initially crediting the Unearned Fees account when payment is received from a customer in advance of performing services.

b. Prepare journal entries (including any adjusting entries as of the end of the month) to record these events using the procedure of initially crediting the Fees Earned account when payment is received from a customer in advance of performing services.

c. Under each method, determine the amount of earned fees reported on the income statement for July and the amount of unearned fees reported on the balance sheet as of July 31.

Reference no: EM131528274

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