Question

Bigs Law Firm received $1,000 in advanced on May 1 from a client for a case to be completed next month. During the month of May, Bigs completed $300 worth of work.

The journal entry to record the revenue earned would be:________

Answer 1

Debit Unearned revenue $300

Credit Revenue $300

Being entries to recognize revenue earned on completion of job.

Step-by-step explanation:

On receipt of the $1,000 in advance on May 1, the entries posted are;

Debit Cash account $1,000

Credit Unearned revenue $1,000

Being entries to recognize the amount received in advance.

On completion of work worth $300, the required entries are;

Debit Unearned revenue $300

Credit Revenue $300

Being entries to recognize revenue earned on completion of job.