journal entry worksheet\n1 2 3 4 5 6\ntwo - thirds of the work related to $12,000 of cash received in…
journal entry worksheet\n1 2 3 4 5 6\ntwo - thirds of the work related to $12,000 of cash received in advance was performed this period.\nnote: enter debits before credits.\ntransaction general journal debit credit\nd.
Answer
Explanation:
Step1: Calculate revenue earned
The amount of cash received in advance is $12,000 and two - thirds of the work is performed. So the revenue earned is $\frac{2}{3}\times12000 = 8000$.
Step2: Determine journal entry
The liability (Unearned Revenue) is decreased (debited) and revenue (Service Revenue) is increased (credited).
Answer:
| Transaction | General Journal | Debit | Credit |
|---|---|---|---|
| d. | Unearned Revenue | 8000 | |
| Service Revenue | 8000 |