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Ex. 138 (20 min.

The adjusted trial balance of Payne Financial Planners appears below and using the information
from the adjusted trial balance, you are to prepare for the month ending December 31:
1. an income statement.
2. an owner's equity statement.
3. a balance sheet.

PAYNE FINANCIAL PLANNERS


Adjusted Trial Balance
December 31, 2002
___________________________________________________________________________

Debit Credit
Cash ...................................................................................................... $ 5,300
Accounts Receivable ............................................................................ 2,200
Office Supplies ...................................................................................... 1,800
Office Equipment .................................................................................. 15,000
Accumulated Depreciation—Office Equipment ..................................... $ 4,000
Accounts Payable ................................................................................. 4,200
Unearned Revenue ............................................................................... 5,000
Olsen, Capital ....................................................................................... 14,400
Olsen, Drawing ..................................................................................... 2,500
Service Revenue ................................................................................... 4,300
Office Supplies Expense ....................................................................... 600
Depreciation Expense ........................................................................... 2,500
Rent Expense ....................................................................................... 2,000
$31,900 $31,900

Notes:

Unearned revenues are revenues received and recorded as liabilities before they are earned.

a. Unearned revenues are subsequently earned by rendering service to a customer.


b. A liability-revenue account relationship exists with unearned revenues.
c. Prior to adjustment, liabilities are overstated and revenues are understated.
d. The adjusting entry results in a debit to a liability account and a credit to a revenue account.
e. Examples of unearned revenues include rent, magazine subscriptions, and customer
deposits for future service.
f. To illustrate an unearned revenue adjusting entry, assume on October 1, Schoen Co.
receives $3,000 cash from a renter in payment of monthly rent for the period October
through December. At October 31, the adjusting entry to record the rent earned in October
is:
Unearned Rent Revenue ............................................................... 1,000
Rent Revenue ($3,000 X 1/3).......................................... 1,000

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Dalam konteks soalan di atas Unearned Revenue adalah Liabiliti, justeru itu ai dilaporkan
dalam Kunci Kira-kira (Balance Sheet).