At the end of the current year 1231 3700 fees have been earn

At the end of the current year, 12/31, $3,700 fees have been earned but have not been billed to clients.  Journalize the adjusting entry to record the accrued fees.

Date

Account Titles

Debits

Credits

Solution

Ans: Accrued revenue is the asset for organisation, which appear in balance sheet at year end. And revenue earned is transferred to income statement for the year. When fees is billed to coustomer, we will transfer the accrue fees to acconts receivable account. Journal Entry for the same will be as follows:

Date

Account Title

Debit Amt in $

Credit Amt in $

31-Dec

Accrued Fees

3700

Fees Earned

3700

31-Dec

Fees Earned

3700

Income Summary

3700