yes
Not right away. When you record unearned fees or revenue it only hits the balance sheet. Ex: Debit- Cash or AR (Asset Account) Credit- Unearned Revenue (Liability) It is a liability until the revenue is earned in which case you then Debit: Unearned Revenue Credit: Revenue/Sales Account (finally and income statement account!)
asset
Unearned fee and unearned revenue is that amount which is received from client in advance but actual services are not provided yet to client.
To journalize unearned fees, you record the amount received as a liability since the service has not yet been performed. The journal entry typically involves debiting the cash account and crediting the unearned revenue account. For example, if you receive $1,000 in unearned fees, you would debit Cash $1,000 and credit Unearned Revenue $1,000. Once the service is performed, you would then recognize the revenue by debiting Unearned Revenue and crediting Revenue.
Unearned revenue is liability until it is earned and shown under liability side of balance sheet.
Not right away. When you record unearned fees or revenue it only hits the balance sheet. Ex: Debit- Cash or AR (Asset Account) Credit- Unearned Revenue (Liability) It is a liability until the revenue is earned in which case you then Debit: Unearned Revenue Credit: Revenue/Sales Account (finally and income statement account!)
asset
yes
Unearned fee and unearned revenue is that amount which is received from client in advance but actual services are not provided yet to client.
Unearned revenue is liability until it is earned and shown under liability side of balance sheet.
No. It's a liability account.
One is a liability and the other an asset.
No it is a current liability and is not included in the Income Statement, as other revenues would be.
Debit to Cash (asset) Credit to Unearned Revenue (Liability)
Unearned Revenue is a Liability Account
credit to unearned revenue
Unearned Fees appear on the