Question

The balance in the uneamed toes account, before adjustment at the end of the yoor, is $95,500. Of those foos, $82,780 have been earned. In addition, $32,840 of fees have been earned but have not been billed. Journace the December 31 adjusting entries (a) to adjust the neared foes account and (b) to record the accrued foes. Refer to the Chart of Accounts for exact wording of account tres

Answer 1

Answer A
	Accounting equation
Date	Description	Post. Ref	Debit	Credit	Assets	Liabilities	Equity
Dec 31	Unearned Fees		$        12,740			Liability decresaed by $12,740.
	Fees earned			$        12,740			Revenue incresaed by $12,740 results in equity incresaed by $12,740.
	To record adjust the fees earned. (95500-82760)
Answer B
	Accounting equation
Date	Description	Post. Ref	Debit	Credit	Assets	Liabilities	Equity
Dec 31	Accounts receivable		$        32,640		Assets incresaed by $32,640.
	Fees earned			$        32,640			Revenue incresaed by $32,640 results in equity incresaed by $32,640.
	To record adjust the accrued fees.