Explanation Unearned income: The income which is received in advance by the company for the services or goods to be delivered in future, is referred to as unearned revenue. Since the revenue is received for the services not yet performed, the revenue is recorded as a liability until the services are performed. After the services are performed, the liability would be reduced and the revenue would be credited. The journal entry for recording unearned income on receipt is: General Journal Page - 1 Date Description Post Ref...

16th Edition

ISBN: 9781264624256

Author: Haddock

Publisher: MCG

See similar textbooks

Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue autho…

Videos

Question

Chapter 12, Problem 17DQ

To determine

Explain the method of recording the unearned income on its receipt.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 12, Problem 16DQ

Chapter 12, Problem 18DQ

Students have asked these similar questions

None

Not need ai solution please solve this general accounting question

Financial accounting

Chapter 12 Solutions

COLLEGE ACCOUNTING ETEXT+CONNECT ACCESS

Ch. 12 - Why is a 10-column worksheet used as part of the...Ch. 12 - Prob. 1.2SRQ Ch. 12 - Prob. 1.3SRQ Ch. 12 - Prob. 1.4SRE Ch. 12 - Prob. 1.5SRE Ch. 12 - Your company prepares financial statements each...Ch. 12 - Prob. 2.1SRQ Ch. 12 - Prob. 2.2SRQ Ch. 12 - The trial balance in the first two columns of the...Ch. 12 - Prob. 2.4SRE

Ch. 12 - Prob. 2.5SRE Ch. 12 - Explain why an error in the amount of an adjusting...Ch. 12 - Why is the accrual basis of accounting favored?Ch. 12 - Prob. 2CSR Ch. 12 - How, if at all, does accrued income differ from...Ch. 12 - Prob. 4CSR Ch. 12 - Prob. 5CSR Ch. 12 - On July 1, 2019, a landlord received 36,000 cash...Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - Income Summary amounts are extended to which...Ch. 12 - Prob. 4DQ Ch. 12 - What types of assets are subject to depreciation?...Ch. 12 - Prob. 6DQ Ch. 12 - What adjustment is made for depreciation on office...Ch. 12 - What is an accrued expense? Give three examples of...Ch. 12 - Prob. 9DQ Ch. 12 - What is a prepaid expense? Give three examples of...Ch. 12 - Prob. 11DQ Ch. 12 - What adjustment is made to record expired...Ch. 12 - What is the alternative method of handling prepaid...Ch. 12 - What is accrued income? Give an example of an item...Ch. 12 - Prob. 15DQ Ch. 12 - Prob. 16DQ Ch. 12 - Prob. 17DQ Ch. 12 - Prob. 18DQ Ch. 12 - Prob. 19DQ Ch. 12 - Prob. 20DQ Ch. 12 - How does the worksheet help the accountant to...Ch. 12 - The beginning inventory of Norcal Wholesalers was...Ch. 12 - Prob. 2E Ch. 12 - Prob. 3E Ch. 12 - Prob. 4E Ch. 12 - Prob. 5E Ch. 12 - Prob. 6E Ch. 12 - For each of the following independent situations,...Ch. 12 - Prob. 1PA Ch. 12 - Prob. 2PA Ch. 12 - Prob. 3PA Ch. 12 - The Green Thumb Gardener is a retail store that...Ch. 12 - Healthy Eating Foods Company is a distributor of...Ch. 12 - The Artisan Wines is a retail store selling...Ch. 12 - Prob. 1PB Ch. 12 - On June 1, 2019, Raquel Ramirez established her...Ch. 12 - Prob. 3PB Ch. 12 - Fun Depot is a retail store that sells toys,...Ch. 12 - Whatnots is a retail seller of cards, novelty...Ch. 12 - The Game Place is a retail store that sells...Ch. 12 - The unadjusted trial balance of Bens Jewelers on...Ch. 12 - Prob. 2CTP Ch. 12 - The president of Murray Stainless Steel...Ch. 12 - Prob. 1FSA

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:9780357110362
Author:Murphy
Publisher:CENGAGE L
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
SWFT Comprehensive Vol 2020
Accounting
ISBN:9780357391723
Author:Maloney
Publisher:Cengage