1. Accounting and the Adjusting Process
For example, if ABC Service Co. receives $24,000 on December 31, 2012 for a one-year service agreement covering January 1 through December 31, 2013, the entire $24,000 is unearned as of December 31, 2012. ... The AE – Debit Fees Receivable and credit Service Revenue for $12,500. ... Service Revenue goes to the Income Statement. Example 6: On 10/1/X2, the company provides services of $15,000 to a client. The client will not be able to pay for the services until 4/1/X3. ...
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- Approx Pages: 8
- Grade Level: High School