During the Current Year Ended December 31,clients Paid Fees in Advance

question 142

Essay

During the current year ended December 31,clients paid fees in advance for accounting services amounting to $15,000.These fees were recorded in an account called Unearned Accounting Fees.If $3,500 of these fees remains unearned on December 31 of this year,present the December 31 adjusting entry to bring the accounts up to date.

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Definitions:

Birthday Present

A gift given to someone on the anniversary of their birth.

Insolvent

Insolvent denotes a state in which an individual or organization is unable to meet its financial obligations as debts become due because its liabilities exceed its assets.

Promises to Give Gifts

Commitments made by one person to give something to another without expecting anything in return.

Suing

The act of bringing a lawsuit against an individual or entity, seeking legal remedy for grievances.