Question

Unearned revenues are generally:

Unearned revenues are generally:

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution - Unearned revenues are generally the liabilities. This is liability till the service/Product is provided.

Unearned revenues are created when customer pays in advance for the services/Products which are not provided.

Study by journal entry

Assume - Cash received in advance for services of $10000

Accounts Title Debit Credit
Cash $10000
Unearned revenue $10000
(Cash received in advance)
Unearned revenue $10000
Service revenue $10000
(Entry when service is provided)
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What type of account prepaid expenses or unearned revenues are?
What type of account prepaid expenses or unearned revenues are?
Which of the following statements is correct? Prepaid expenses, depreciation, and unearned revenues involve previously recorded...
Which of the following statements is correct? Prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities. Accrued expenses and accrued revenues involve assets and liabilities that have not yet been recorded. Adjusting entries are used to record both accrued expenses and accrued revenues Prepaid expenses, depreciation, and unearned revenues require adjusting entries to record the effects of the passage of time. All of these
For a recent year, Microsoft Corporation (MSFT) reported short-term unearned revenue of $23,223 million. For the...
For a recent year, Microsoft Corporation (MSFT) reported short-term unearned revenue of $23,223 million. For the same year, Microsoft also reported total revenues of $93,580 million. a. Assume that Microsoft recognized $2,000 million of unearned revenue as revenue during the year, what entry for unearned revenue did Microsoft make during the year? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease. Unearned revenue $ million Revenue $ million b. What...
1. Which of the following statements about revenues and expenses is correct? If revenues are greater...
1. Which of the following statements about revenues and expenses is correct? If revenues are greater than expenses, the company has net income and Retained Earnings decreases. If revenues are less than expenses, the company has a net loss and Retained Earnings decreases. If revenues are less than expenses, the company has a net loss and Common Stock increases to balance off the loss. If revenues are greater than expenses, the company has net income and Common Stock increases. 2....
Adjustment for Unearned Fees The balance in the unearned fees account, before adjustment at the end...
Adjustment for Unearned Fees The balance in the unearned fees account, before adjustment at the end of the year, is $1,375,000. What is the adjustment if the amount of unearned fees at the end of the year is $1,100,000? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease. Unearned fees $ Fees earned $
What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is...
What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is the unearned revenue recognized in the financial statements?
Adjustments for Unearned and Accrued Fees The balance in the unearned fees account, before adjustment at...
Adjustments for Unearned and Accrued Fees The balance in the unearned fees account, before adjustment at the end of the year, is $540,500. Of these fees, $54,050 have been earned. In addition, $162,150 of fees have been earned but not billed to clients. What are the adjustments (a) to adjust the unearned fees account and (b) to record the accrued fees? Indicate for each account affected whether the account is increased or decreased, and the amount of the increase or...
13.The accounting for plant assets has a similarity to ______________ Deferred revenues (prepaid revenues) Deferred expenses...
13.The accounting for plant assets has a similarity to ______________ Deferred revenues (prepaid revenues) Deferred expenses (prepaid expenses) Accrued revenues Accrued expenses 14.If the errors caused by rental expenses was added up incorrectly, it should be RM8,480 instead of RM8,400, and the error was identified. After the error being corrected, net profit should _________. Increase by RM80 Decrease by RM80 Remain the same None from above _15.________________ is a revenue that has been earned but for which the cash has...
The Unearned Revenue account was not adjusted for work performed in the current period. What is...
The Unearned Revenue account was not adjusted for work performed in the current period. What is the effect of this error? Select one: A. The assets will be overstated and liabilities will be overstated. B. The liabilities will be understated and revenues will be understated. C. The assets will be understated and expenses will be understated. D. The liabilities will be overstated and revenues will be understated. Jerry’s Window Service received $14,000 from a client on February 20. This payment...
The beginning balance in unearned subscription revenue is $900. The ending balance in unearned subscription revenue...
The beginning balance in unearned subscription revenue is $900. The ending balance in unearned subscription revenue is $915. Cash received for prepaid subscription during the period is $230. How much subscription revenue was earned during the period?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT