Question

At December 31, the unadjusted trial balance of H&R Tacks reports Deferred Revenue of $5,300 and Service Revenues of $34,100. Obligations for one-half of the deferred revenue have been fulfilled as of December 31. Required: 1. Prepare the adjusting journal entry on December 31. 2. Prepare the T-accounts for each account, enter the unadjusted balances, post the adjusting journal entry, and report the adjusted balance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the adjusting journal entry on December 31. (If no entry is required for a transaction/event, select "No Journal Entry in the first account field.) View transaction list Journal entry worksheet 1 Record the adjusting entry on December 31

Answer 1

Solution: Credit Preparatio of Adjusting entry on December 31: Date General Journal Debit Dec-31 Deferred Revenue (5300*1/2) $ Service Revenue 2,650 $ 2,650 Preparation of T Accounts: $ 5,300 Adjustment $ Unearned Revenue account: Un adjusted balance 2,650 Adjusted Balance $ 2,650 Service revenue account: Un adjusted balance Adjustment Adjusted Balance $ $ $ 34,100 2,650 36,750 Kindly Comment down for any clarifications/ queries and please upvote.