The balance in the unearned fees account, before adjustment at the end of the year, is $36,950. Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $14,440.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The balance in the unearned fees account, before adjustment at the end of the year, is $36,950.
Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $14,440.

Expert Solution
Step 1

Given:

 Unearned Fees Accounts without adjustment $36,950  
 Unearned Fees Accounts with adjustment $14,440  

 

Unearned Fees Account means cash received in advance of $36,950.

During the year, work of $22,510 (36950-14440) has been done and $14,440 is still unearned. 

 

So for these earnings of $22,510, there should be an entry which is done in the next step:

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