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Question 3.5: Adjustment for Unearned Revenue The balance in the unearned ...

Adjustment for Unearned Revenue

The balance in the unearned fees account, before adjustment at the end of the year, is $44,900.

Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $12,300.

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Unearned Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                32,600

Fees Earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                        32,600

Fees earned ($44,900 – $12,300).

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