A 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?

Question

Gunnar Roth

Business

29 December, 21:03

A 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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Ashlyn Schaefer · Answer 1

The adjusting journal entries are shown below:

On January 15

1. Cash A/c Dr $600 ($60 * 10 voice lessons)

To Unearned revenue A/c $600

(Being the cash is received)

On January 31

2. Unearned revenue A/c Dr $480 ($60 * 8 voice lessons)

To Service revenue A/c $480

(Being the unearned revenue is recorded)