journal entry worksheet\non september 1, wti agreed to do five training courses for a client for $2,700…

journal entry worksheet\non september 1, wti agreed to do five training courses for a client for $2,700 each. two courses will start immediately and finish before the end of the year. three courses will not begin until next year. the client paid $13,500 cash in advance for all five training courses on september 1, and wti credited\nnote: enter debits before credits.\ntransaction general journal debit credit

journal entry worksheet\non september 1, wti agreed to do five training courses for a client for $2,700 each. two courses will start immediately and finish before the end of the year. three courses will not begin until next year. the client paid $13,500 cash in advance for all five training courses on september 1, and wti credited\nnote: enter debits before credits.\ntransaction general journal debit credit

Answer

Explanation:

Step1: Identify the nature of the transaction

The company received cash in advance for services (training courses) yet to be fully performed. Cash is debited as it increases, and Unearned Revenue is credited as a liability since the company owes the services. Debit: Cash $13,500 Credit: Unearned Revenue $13,500

Step2: Determine the revenue recognized for the current - year courses

Each course costs $2,700 and 2 courses are completed in the current year. So the revenue recognized is $2,700×2 = $5,400. Debit: Unearned Revenue $5,400 Credit: Service Revenue $5,400

Answer:

Transaction General Journal Debit Credit
1 Cash $13,500
Unearned Revenue $13,500
2 Unearned Revenue $5,400
Service Revenue $5,400