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If 1800 was received in January for services performed in January what was the balance in Unearned Service Revenue at December 31 2013?
If $1,800 was received in January for services performed in January, this amount would not affect the balance in Unearned Service Revenue at December 31, 2013, as it relates to future revenue. The balance in Unearned Service Revenue at that time would depend on any amounts received in advance for services not yet performed prior to January 2014. Without additional information regarding prior unearned revenue, we cannot determine the exact balance at December 31, 2013.
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What is Unearned fees and unearned revenue?
Unearned fee and unearned revenue is that amount which is received from client in advance but actual services are not provided yet to client.
Is unearned fees a example of prepaid expenses?
No, unearned fees are not an example of prepaid expenses. Unearned fees represent income received before services are performed, indicating a liability on the balance sheet until the service is rendered. In contrast, prepaid expenses are payments made in advance for goods or services that will be received in the future, representing an asset until the benefit is realized.
What is unearned service revenue?
The revenue for which the services have been rendered but the return for the services i.e revenue, is yet to be received from the person to whom we have rendered the services is called unearned service revenue.
When payment is received for services not yet rendered no entry is recorded until that service has been rendered?
When payment received without services: Debit Cash / bank Credit Unearned revenue When services rendered: Debit Unearned Revenue Credit Services revenue
Which is associated with cash received in advance for services to be performed in the future?
Cash received in advance for services to be performed in the future is associated with a liability known as "unearned revenue" or "deferred revenue." This represents an obligation for the company to deliver services or products at a later date. Until the services are performed, the company cannot recognize this cash as revenue on its income statement. Instead, it is recorded on the balance sheet as a liability.
What is Unearned fees and unearned revenue?
Unearned fee and unearned revenue is that amount which is received from client in advance but actual services are not provided yet to client.
Is unearned fees a example of prepaid expenses?
No, unearned fees are not an example of prepaid expenses. Unearned fees represent income received before services are performed, indicating a liability on the balance sheet until the service is rendered. In contrast, prepaid expenses are payments made in advance for goods or services that will be received in the future, representing an asset until the benefit is realized.
What is unearned service revenue?
The revenue for which the services have been rendered but the return for the services i.e revenue, is yet to be received from the person to whom we have rendered the services is called unearned service revenue.
When payment is received for services not yet rendered no entry is recorded until that service has been rendered?
When payment received without services: Debit Cash / bank Credit Unearned revenue When services rendered: Debit Unearned Revenue Credit Services revenue
Which is associated with cash received in advance for services to be performed in the future?
Cash received in advance for services to be performed in the future is associated with a liability known as "unearned revenue" or "deferred revenue." This represents an obligation for the company to deliver services or products at a later date. Until the services are performed, the company cannot recognize this cash as revenue on its income statement. Instead, it is recorded on the balance sheet as a liability.
What type of account is Unearned Consulting Fees?
Unearned Consulting Fees is classified as a liability account. It represents money received by a business for services that have not yet been performed, indicating an obligation to deliver those services in the future. This account is typically recorded on the balance sheet until the services are rendered, at which point it is recognized as revenue.
What is the journal entry for prepaid income?
The journal entry for prepaid income is a debit to the Cash account and a credit to the Unearned Revenue account. The Unearned Revenue account is a liability. The rationale for such an entry is that this is income received in advance. This means that the income has not been earned since the services have not yet been performed. When the services have been performed it is appropriate to recognize the revenue and offset the liability account, unearned revenue.
What is the difference between prepaid unearned account?
Prepaid is that amount of expense which is paid in advance and expense not occured while unearned account is that amount where amount for services received in advance but services not provided.
What is difference betweenEarned revenue and unearned revenue?
Earned Revenue = The revenue benefits of which have been provided to customers Unearned Revenue = The amount of which is already received but the corresponding benefits or services have not yet been provided. Example: Amount received to provide repair services next month. So when next month services will be provided that unearned revenue become earned revenue.
Unearned revenue a liability?
Unearned revenue is the amount which client has paid already but not received the services yet so it is the liability of the company until they renderred the services to client or otherwise return back the amount to the client.
How are liabilties unearned revenue?
Because it is revenue received but services or goods have not been provided to the customer yet.
Do you report unearned revenue on the income statement?
Unearned revenue is liability for business as amount is received but services are not provided that's why it is liability until it is earned and shown in balance sheet.
