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Credit. Unearned Revenue is a Liability and like all Liabilities it has a Credit Balance.
I decided to add this as I have been asked "why" is Unearned Revenue a liability isn't it Revenue?
Yes and no. The key word here is "Unearned". Because of the fact that it is unearned, the company (although has received money) is liable for that in some form. For example, if a person pays a business $5,000 in advance for painting their house, the company now is liable for that amount, meaning they have to do one of two things.
1. Complete the job and "earn" the money
or
2. Refund the money and not do the job
Until this is done, the money received in advance for the job is listed as Unearned Revenue and categorized as a liability.
What else can I help you with?
What type of account is Unearned revenue and what its normal balance?
Unearned revenue is a liability account. It is revenue that is received in one fiscal period despite the fact that revenue is not earned until another fiscal period. Its normal balance is credit.
Is unearned service revenue debit or credit?
Unearned services revenue is that part of revenue which is not yet earned and as it is not yet earned then it is liability for business and hence like all other liabilities it has credit balance as normal default balance.
Is unearned revenue a credit balance?
Yes, Unearned revenue has credit balance and it is liability for business until it is actually earned.
What is the normal balance of unearned rent?
It has a normal balance of a credit.
Is unearned revenue an asset or liablility?
Unearned revenue is liability until it is earned and shown under liability side of balance sheet.
What type of account is Unearned revenue and what its normal balance?
Unearned revenue is a liability account. It is revenue that is received in one fiscal period despite the fact that revenue is not earned until another fiscal period. Its normal balance is credit.
Is unearned service revenue debit or credit?
Unearned services revenue is that part of revenue which is not yet earned and as it is not yet earned then it is liability for business and hence like all other liabilities it has credit balance as normal default balance.
Is unearned revenue a credit balance?
Yes, Unearned revenue has credit balance and it is liability for business until it is actually earned.
What is the normal balance of unearned rent?
It has a normal balance of a credit.
Is unearned revenue an asset or liablility?
Unearned revenue is liability until it is earned and shown under liability side of balance sheet.
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.
When is unearned revenue recognized in the financial statements?
What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is the unearned revenue recognized in the financial statements Is a church a company that could have unearned revenue?
Where does unearned service revenue goes in an income statment?
It doesn't. The account appears on the balance sheet; the unearned revenue is presented as part of current liabilities.
What financial statement would unearned revenue appear?
balance sheet
Is unearned revenue recorded on the balance sheet or the income statement?
unearned income is to be shown as a liability in balance sheet until the commitment for such receipt is satisfied.
The type of account and normal balance of Unearned Rent is?
The normal balance of Unearned Rent is typically a liability credit entry. The balance will show up in the post-closing trial of the balance sheet.
Do unearned fees go into an income statement?
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!)
