Question

Adjusting Entry for Accrued Fees At the end of the current year, $9,800 of fees have been earned but have not been billed to clients. a. Journalize the adjusting entry to record the accrued fees. If an amount box does not require an entry, leave it blank. Accounts Payable b. Accounts Receivable r than the accrual basis had been used, would an adjusting entry have been necessary? Cash Fees Earned Fees Expense Fees Payable Prepaid Fees Unearned Fees

Answer 1

Preparation of Adjusting entry for Accrued Fees: Journal Entries Date Account Title and Explaination Credit Post. Ref. Debit $ a $ 9,800.00 Accounts Receivable Fees Earned (To record adjusting entry for Fees Earned) 9,800.00

Answer to Requirement b:

Under Cash Basis of Accounting, revenues are recorded when cash received and Expenses are recorded when cash paid. so there is no need to make adjusting entries if Cash Basis of Accounting is used instead of Accrual Basis of Accounting.