The balance in the unearned fees account, before adjustment at the end of the year, is $95,500. Of these fees, $82,760 have been earned. In addition, $32,640 of fees have been earned but have not been billed. Journalize the December 31 adjusting entries (a) to adjust the unearned fees account and (b) to record the accrued fees. Refer to the Chart of Accounts for exact wording of account titles.

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Business

Georgia Munoz

14 December, 08:58

The balance in the unearned fees account, before adjustment at the end of the year, is $95,500. Of these fees, $82,760 have been earned. In addition, $32,640 of fees have been earned but have not been billed. Journalize the December 31 adjusting entries (a) to adjust the unearned fees account and (b) to record the accrued fees. Refer to the Chart of Accounts for exact wording of account titles.

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Mikaela Byrd · Answer 1

The adjusting entries are shown below:

a. Unearned Fees A/c Dr $82,760

To Fees Earned A/c $82,760

(Being unearned fees are adjusted)

For recording the transactions we debited the unearned fees account and credited the fees earned account

b. Accounts Receivable A/c Dr $32,640

To Fees Earned A/c $32,640

(Being accrued fees recorded)

As the earned fees do not bill so we debited the account receivable account and credited the fees earned account