Help Save & B Chi QS 3-11 Adjusting for unearned revenues LO P1 For each separat

Question

Help Save & B Chi QS 3-11 Adjusting for unearned revenues LO P1 For each separate case below, follow the three-step process for adjusting the unearned revenue liability account at December 31 what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2 Assume no other adjusting entries are made during the year Tao Co. receives $10,800 cash in advance for four months of legal services on sh and crediting Unearned Revenue both for $10,800. It is now December 31, 2017, and Tao has provided legal services 1, 2017, and records it by debit from October 1 through December as planned. What adjusting entry should Tao make to account for the work 31, 2017? Unearned revenue Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. t News. Its subscribers pay $34 to Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The new subscr has 100 new subscribers as of July 1, 2017. It sends Contest News to each of these subscribers every month

Explanation / Answer

Requirement a Steps 1 The current account balance equals 10800 Steps 2 The current account balance should equals 2700 Steps 3 The adjusting December 31 entry is as follows Date Account title & explanation Debit Credit Amount in $ Amount in $ Dec-31 Unearned Revenue 8100 Revenue from Services 8100 Note : It has been assumed that one month's services still to be provided Requirement b Steps 1 The current account balance equals 3400 Steps 2 The current account balance should equals 1700 Steps 3 The adjusting December 31 entry is as follows Date Account title & explanation Debit Credit Amount in $ Amount in $ Dec-31 Unearned Subscription Revenue 1700 Revenue from Subscription 1700 Note : it has been assumed that all of the 100 subscriber has subcribed the issues on July 1

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