Unearned Revenue Aylmer has some customers that pay for services in advance of work started....
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Accounting
Unearned Revenue
Aylmer has some customers that pay for services in advance of work started. At December 31, Y6, the accountant reviewed unearned revenue to see how much revenue had been earned.
In the Excel spreadsheet, see the tab labelled Unearned Revenue for details relating to unearned revenue and to make any calculations for an adjusting journal entry.
The following items relate to Unearned Sales Revenue:
Date
Received
Customer Name
Amount
Details/Comments
11/1/Y6
Plaid Corp
$ 71,400
at December 31, $58,900 worth of work was completed
12/5/Y6
Joseph Company
-
at December 31, 33% of the work was completed
12/15/Y6
Houston Corp
93,500
at December 31, 3/4 of the work was completed
12/30/Y6
TC Jester
201,300
work is to start on January 3, Y7
$ 366,200
Based on the above information, calculate the amount the should be recorded as earned income for Y6
Answer & Explanation
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