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2 January, 02:40

The balance in the unearned fees account, before adjustment at the end of the year, is $12,960. Required: Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $6,960. Refer to the Chart of Accounts for exact wording of account titles.

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  1. 2 January, 02:45
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    The journal entry is shown below:

    Explanation:

    The journal entry for the following is as follows:

    On December 31

    Unearned Fees A/c ... Dr $6,000

    Fees Earned A/c ... Cr $6,000

    Being the adjusting entry is posted for the unearned fees.

    The account of unearned fees is debited against the account of fees earned with the amount of $6,000.

    Working Note:

    Amount = Before adjustment amount - Unearned fees at the year end

    where

    Before adjustment amount is $12,960

    Unearned fees at the year end is $6,960

    Putting the values above:

    Amount = $12,960 - $6,960

    = $6,000
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