a.
Introduction: Unearned revenue is treated as a liability of the company and is reported under the
To prepare:
b.
Introduction: When advance received for the performance of a job is not considered as liability then it is considered as revenue. Revenue account is credited and the cash account is debited while
To prepare: Journal entries for the transaction of the company.
c.
Introduction: Income statement and balance sheet is prepared at the end of accounting year to reflect the financial performance and financial position of the company. The amount received but not earned can be considered as liability or revenue.
The amount of service revenue and unearned revenue reported in income statement and balance sheet respectively.
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Chapter 3 Solutions
FIN + MANAG ACCT 180 DAY CUST CONN ACC
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