accounting question- unearned service revenue?

Question

so i was paid $1,200 for a job to be done over 30 days on june 21.

at the end of the month (june 30), i need to put a record in my journal.

is the unearned service revenue of 360 (9 days times $40) a debit or credit???

Answer 1

If you were paid $1,200 to work 30 days starting from June 21, you'd have worked 10 days come June 30 (both days inclusive). The earned revenue is 10 days x $40 = $400; and the unearned revenue is 20 days x $40 = $800. When the customer paid you the $1,200, the entry:
June 21
Dr Cash 1,200
Cr Unearned revenue 1,200

June 30
Dr Unearned revenue 400
Cr Service revenue 400

after which the balance in the unearned revenue a/c would be $800, to be earned over the next 20 days.

Answer 2

Unearned Service Revenue

Answer 3

Unearned Revenue Debit Or Credit

Answer 4

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RE:
accounting question- unearned service revenue?
so i was paid $1,200 for a job to be done over 30 days on june 21.

at the end of the month (june 30), i need to put a record in my journal.

is the unearned service revenue of 360 (9 days times $40) a debit or credit???

Answer 5

The original entry should have been this:
Cash $1200 Debit
Unearned Revenue $1200 Credit (since you have not completed the work and you received the payment. Unearned Revenue - revenues received in cash and recorded as liabilities before they are earned)

Then on June 30 you could make the following entry:
Unearned Revenue $840 Debit
Revenue $840 Credit (Now you report the revenue that you have completed. Leaving you with a credit balance of $360 in Unearned Revenue)

I assume that you made this entry first:
Cash $1200 Debit
Revenue $1200 Credit

If so, make this entry now:
Revenue $360 Debit
Unearned Revenue $360 Credit
This entry will show an accurate balance for the revenue you earned in June and show a liability of work you still need to complete.

I hope this helps.

Answer 6

I believe that the yearly memberships are due in 2012. therefore you have to divide the $27,000 between 12 months, and calculate the revenues. Remember that if each month consist of 30 days, You have already two of those months earned (approximately $4,500... do the calculation). The difference of 27,000 and 4,500 would be Unearned Revenues (a liability). Hope this helps.

Answer 7

accounting question unearned service revenue

Answer 8

UNREAD SERVICE REVENUE EARNED DURING JANUARY 800

Answer 9

I think it would be a debt, because you have actually finished the job yet to earn the money. But when you earn the money you would need to credit the account for the amount that you debted it for.