debit unearned income
credit services liability
[Debit] Cash / bank [Credit] Unearned Interest 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.
Cash A/C Dr To Rent Received in Advance A/C
Debit cash /bank 1500Credit Unearned rent 1500
debit cash / bankcredit unearned revenue
[Debit] Cash / bank [Credit] Unearned Interest Income
income recived a/c dr to unearned income
Debit customer depositsCredit unearned revenue
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.
Cash A/C Dr To Rent Received in Advance A/C
Debit cash /bank 1500Credit Unearned rent 1500
debit cash / bankcredit unearned revenue
Debit advance cash receivedCredit unearned revenue
No journal entry for net income it is the difference between total expenses and total revenue and it is the balancing figure
Cash collected from sales of tickets should be charged to sales rather then unearned revenue so the correct entry is as follows: [Debit] Unearned Revenue xxxx [Credit] Sales revenue xxxx
[Debit] Accrued income receivable [Credit] Accrued income
[Debit] Accrued income receivable [Credit] Accrued income