Jasper's unadjusted trial balance reports Unearned Client Revenue of $4,000 and Client Reverse...

Question:

Jasper's unadjusted trial balance reports Unearned Client Revenue of $4,000 and Client Revenue Earned of $30,000. An examination of client records reveals that $2,500 of previously unearned revenue has now been earned.

a. Prepare the necessary adjusting entry pertaining to these accounts.

b. At what amount will Client Revenue Earned be reported in Jasper's income statement?

Answer and Explanation:

a. Prepare the necessary adjusting entry pertaining to these accounts.

Debit Unearned Client Revenue $2,500

Credit Client Revenue Earned $2,500


b. At what amount will Client Revenue Earned be reported in Jasper's income statement?

Client Revenue Earned will be reported in Jasper's income statement in the amount of $30,000 + $2,500 = $32,500.


Learn more about this topic:

Unearned Revenue in Accounting: Definition & Examples

from Financial Accounting: Help and Review

Chapter 5 / Lesson 33
10K

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