Adjusting entries for unearned and accrued fees The balance in the unearned fees account, before adjustment at the end of the year, is $97,770. Of these fees, $82,220 have been earned. In addition, $34,250 of fees have been earned but have not been billed. Journalize the adjusting entries (a) to adjust the unearned fees account and (b) to record the accrued fees.
|To transfer the unearned fee to earned revenue|
|Unearned Revenue a/c Dr||82,220|
|To Revenue a/c||82,220|
|(Being Unearned revenue recognised)|
|To recognize the Earned but not billed fee|
|Earned Fee receivable a/c Dr||34,250|
|To Revenue a/c||34,250|
|(Being Fee earned is recognized)|
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Question & Answer: Adjusting entries for unearned and accrued fees The balance in the unearned fees account, before adjustment at…..
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