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Problem - On September 1, 2019, Smithson Rental Agency received $600 from a client for general services to be rendered by the agency over a 6-month period beginning that date. The receipt of this money was recorded as a credit to Unearned Revenue. Except for the initial recording, no further entries have been made as of December 31. The agency has performed services per the agreement. Prepare the journal entries for:
(a) September 1, 2019
(b) December 31, 2019
Check figures: (a) Unearned Revenue (cr), $600 (b) Unearned Revenue (dr), $400
How much service revenue is reported in 2019 In 2020?
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