At the beginning of the year Dapper Advertising owed

customers #359
At the beginning of the year, Dapper Advertising owed customers $2,400 for unearned revenue
collected in advance. During the year, Dapper received advance cash receipts of $7,500 and
earned $15,000 of service revenue (exclusive of any amount earned from advance payments).
At year-end, the liability for unearned revenue is $2,600 and unadjusted service revenue is
$15,000.Requirements:1. Record the adjusting entry assuming that Dapper records the cash
receipt of unearned revenue by initially crediting a liability account. Post the adjusting entry to
the Unearned Revenue and Service Revenue T-accounts. Make sure to include the beginning
balance and additional unearned revenue in the Unearned Revenue T-account.2. Record the
adjusting entry assuming that Dapper records the cash receipt of unearned revenue by initially
crediting a revenue account. Post the adjusting entry to the Unearned Revenue and Service
Revenue T-accounts. Make sure to include the beginning balance in the Unearned Revenue T-
account and the additional unearned revenue in the Service Revenue T-account.3. Compare
the ending balances of the T-accounts under both approaches. Are they the same??View
Solution:
At the beginning of the year Dapper Advertising owed customers

ANSWER
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