debit cash / bankcredit unearned revenue
Debit advance cash receivedCredit unearned revenue
The journal entry for prepaid income is a debit to the Cash account and a credit to the Unearned Revenue account. The Unearned Revenue account is a liability. The rationale for such an entry is that this is income received in advance. This means that the income has not been earned since the services have not yet been performed. When the services have been performed it is appropriate to recognize the revenue and offset the liability account, unearned revenue.
Unearned Revenue is a Liability Account
credit to unearned revenue
Initial receipt of unearned revenue from a customer for service to be provided in the future. Recognition of the unearned revenue as the service is performed and earned. Adjustment entry to reflect the portion of unearned revenue that has now been earned.
unearned revenue adjusting entries
Cash collected from sales of tickets should be charged to sales rather then unearned revenue so the correct entry is as follows: [Debit] Unearned Revenue xxxx [Credit] Sales revenue xxxx
debit cash / bankcredit unearned revenue
Debit customer depositsCredit unearned revenue
Debit advance cash receivedCredit unearned revenue
The journal entry for prepaid income is a debit to the Cash account and a credit to the Unearned Revenue account. The Unearned Revenue account is a liability. The rationale for such an entry is that this is income received in advance. This means that the income has not been earned since the services have not yet been performed. When the services have been performed it is appropriate to recognize the revenue and offset the liability account, unearned revenue.
Unearned Revenue is a Liability Account
credit to unearned revenue
[Debit] Unearned revenue [Credit] Sales revenue
debit accounts receivablecredit sales revenue
Unearned Revenue is a liability account.