Account - Adjusting Accounts

STEVIE-G™

2009-09-20 9:30 am

The following descriptions of items a and b that require adjusting entries on December 31, 2009, follow.
a. On November 1, the school agreed to do a specil six-month course(start immediately) for a client. The contract calls for a monthly fee of $2,500, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2010.
b. On October 15, the school agreed to teach a four-month class (beginning immediately) for an individual for $1,600 tuition per month payable at the end of the class . The services are being provided as agreed, and no payment has yet been received.
想問呢2個item既adjusting journal entries點寫?

回答 (1)

優誌企業研究所

2009-09-20 9:56 am

✔ 最佳答案

Question a
Dr. Unearned training fee 5,000
Cr. Training fee income 5,000
Narrative:-
Being recognition of training fee for November and December 2009 (HK$2,500 * 2 months)

Question b
Dr. Accounts receivable 4,000
Cr. Tuition fee income 4,000
Narrative:-
Being recognition of tuition fee for the period from 15 October 2009 to 31 December 2009 (HK$1,600 * 2.5 months)

參考: Frank Wood Accounting I

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