Question

Andrew’s Legal Services received $2,000 in advanced on June 1 from a client for a case to be completed next month. During the month of June, Andrew’s completed $500 worth of work. The journal entry to record the revenue earned would be:

Answer 1

Answer:

Unearned Revenue $500

       To Service Revenue $500

(Being the revenue earned is recorded)

Explanation:

The journal entry to record the revenue earned is shown below:

Unearned Revenue $500

       To Service Revenue $500

(Being the revenue earned is recorded)

For recording this given transaction, we debited the unearned revenue and credited the service revenue so that the correct posting could be done

Plus, we ignored the advance received amount as it is not relevant