Question

At the end of the current year, $59,500 of fees have been earned but have not been billed to clients. Required: A. Journalize the adjusting entry to record the accrued fees on December 31. Refer to the Chart of Accounts for exact wording of account titles. B. If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?

Answer 1

Answer:

$59,500

Explanation:

Following are the table of the given question of adjusting entry  .

Date                      Particular                       Debit             Credit

December 31        Receivable amount        $59,500

December 31        Fess earned                                          $59,500

B

• No in the cash-based accounting the adjustment is not recording as the fees earned  .
• When the respective entry is in cash entry we will never be recorded in the adjustment entry