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What is the journal entry for payment which is not earned?
debit cash / bankcredit unearned revenue
Is unearned revenue is nominal account?
Unearned ravenue is liability account as revenue is not yet earned but cash received.
What effect does revenue in the income statement have on balance sheet assets?
When you report revenue, you will either increase cash or accounts receivable on the balance sheet depending on whether the cash was collected when earned.
What is the journal entry for revenue earned during the month included 6000 cash and 5000 on account?
cash debit with 6000 and unearned revenue is 5000 credit and and account payable credit
When cash is received from sales what do it do to owner's equity?
This depends on when the cash was received. If the cash was received at the time of sale, then the owner's equity will increase. This is because revenue (and subsequently owner's equity) is increased at the time it is earned. If, on the other hand, the cash is received as a result of a collection on Accounts Receivable from a previous sale, this will have no affect on owner's equity. This is because the revenue was recognized as soon as the receivable was recorded (i.e., the revenue was earned).
The accrual basis of accounting requires revenue be recorded when cash is received from customers?
False. Under the accrual basis of accounting, revenue is recorded when earned, not necessarily when cash is received. Revenue is earned when a sale is made, whether the customer pays cash or makes the purchase on account.
When revenue is earned do you not enter it into the journal until cash has been collected?
yes
What is the journal entry for payment which is not earned?
debit cash / bankcredit unearned revenue
What would the journal entry if revenue earned by the business during the year?
debit cash / bank / accounts receivablecredit revenue account
Is unearned revenue is nominal account?
Unearned ravenue is liability account as revenue is not yet earned but cash received.
What effect does revenue in the income statement have on balance sheet assets?
When you report revenue, you will either increase cash or accounts receivable on the balance sheet depending on whether the cash was collected when earned.
What is the journal entry for revenue earned during the month included 6000 cash and 5000 on account?
cash debit with 6000 and unearned revenue is 5000 credit and and account payable credit
When cash is received from sales what do it do to owner's equity?
This depends on when the cash was received. If the cash was received at the time of sale, then the owner's equity will increase. This is because revenue (and subsequently owner's equity) is increased at the time it is earned. If, on the other hand, the cash is received as a result of a collection on Accounts Receivable from a previous sale, this will have no affect on owner's equity. This is because the revenue was recognized as soon as the receivable was recorded (i.e., the revenue was earned).
An adjusting entry would adjust revenue so it is reported when earned and not when cash is received.?
True
An adjusting entry would adjust revenue so it is reported when earned and not when cash is received?
True
What could be journal entries for unearned revenue?
Initial receipt of unearned revenue from a customer for service to be provided in the future. Recognition of the unearned revenue as the service is performed and earned. Adjustment entry to reflect the portion of unearned revenue that has now been earned.
Is bank interest classed as revenue?
Yes. The interest earned by the bank is revenue to the bank and the interest paid by the bank to its deposit customers is revenue for the customer. Either ways it is considered an income or revenue. And, the person earning this revenue is liable to pay taxes for it.
