Question

The balance in the unearned fees account, before adjustment at the end of the year, is
$112, 790. Of these fees, $69,735 have been earned. In addition, $13, 200 of fees have
been earned but have not been billed. Journalize the adjusting entries (a) to adjust the
unearned fees account and (b) to record the accrued fees.

Answer 1

The balance at the end of the year is $112, 790. Of these fees: $69,735 have been earned, $13, 200 have been earned but have not been billed.
(a) The adjusted unearned fees account will be: 112,790 + 69,735 + 13,200 = $195,725.
(b) The records of the accrued fees will be:
Debit
Balance 112,790
Fees earned 69,735
Fees Payable 13,200
Ending balance 195,725