Example of unearned service fees, Accounting Basics

Assignment Help:

Q. Example of Unearned service fees?

Unearned service fees On December 7 Micro Train Company received USD 4500 from a customer in payment for future training services. The firm enters the following journal entry

2443_Unearned service fees.png


The two T-accounts recitation to training fees are Unearned Service Fees a liability and Service Revenue. These accounts shows as follows on 2010 December 31 before adjustment

1613_Unearned service fees1.png


The balance in the Unearned Service Fees liability account set up when Micro Train received the cash will be converted into revenue as the company performs the training services. Previous to Micro Train prepares its financial statements it must make an adjusting entry to transfer the amount of the services performed by the company from a liability account to a revenue account.


Related Discussions:- Example of unearned service fees

Joural Transaction, A machine valued on the books at $8500 was sold on cre...

A machine valued on the books at $8500 was sold on credit to $8000.

Gender for the moment, The CPSdata to re-estimate the difference among aver...

The CPSdata to re-estimate the difference among average male and female pay. Use for example, the regression LS LNWAGE C FE a.  Can you avoid the hypothesis that mean female

A good purchased for $480 sells for $700, A good purchased for $480 sells f...

A good purchased for $480 sells for $700. If the store's operating expenses are 30% of cost, what is the percentage markup on cost? A. 1.5% B. 10.57% C. 15.83% D. 4

What is sales discounts account, Q. What is Sales Discounts account? Th...

Q. What is Sales Discounts account? The Sales Discounts account is the contra revenue account to the Sales account. In the income statement the seller deducts this contra reven

Completing the accounting cycle, Q. Completing the accounting cycle? Su...

Q. Completing the accounting cycle? Subsequent to studying this chapter you should be able to - Recapitulate the steps in the accounting cycle. - Organize a work sheet fo

What is goodwill?, Goodwill is an intangible asset of a organization which ...

Goodwill is an intangible asset of a organization which contains company reputation, fame etc., By goodwill company share value may enhances

What is consistency, Q. What is Consistency? Consistency in general req...

Q. What is Consistency? Consistency in general requires that a company use the same accounting principles and reporting practices through time. This concept disallows indiscrim

Social media, kind of information you would want to put on social media

kind of information you would want to put on social media

Financial documents, when discrepancies occured on financial documents,what...

when discrepancies occured on financial documents,what consequences will arise?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd