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2 December, 03:53

company is in its first month of operations. On January 15, the company receives $600 from customers who will receive 10 voice lessons ($60 per lesson). As of January 31, the company has provided 8 voice lessons. What adjusting entry would be made at the end of January

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  1. 2 December, 03:55
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    The journal entry at the time of receiving is

    Cash A/c Dr $600

    To Unearned revenue A/c $600

    (Being the cash is received in advance)

    Now the adjusting entry is

    Unearned revenue A/c Dr $480

    To Service revenue A/c $480

    (Being the revenue is recorded)

    The computation is shown below:

    = Number of voice lessons * per lesson

    = 8 * $60

    = $480
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