July 31: The balance of the unearned revenue account relates to the contract bet

Question

July 31: The balance of the unearned revenue account relates to the contract between PS Music and WHBD, described in the July 3, 2012 transaction, which included the following: "On behalf of PS Music, Pat signed a contract with a local radio station, WHBD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600." In accordance with the contract, Pat received $7,200 from WHBD as an advance payment for the first two months.

Explanation / Answer

I dont know if this question is from a book that I do not know or have but I do not know what you need for this question. So far this is what I get from it: July 3 Cash $ 7,200 Unearned Revenue 7,200 (to record for services not performed) July 31 Unearned Revenue 3,600 Revenue 3,600 (to record earned revenue for one month)

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