1. Exercise 8-69 Unearned Revenue

   Jennifer's Landscaping Services signed a $400-per-month contract on November 1, 2019, to provide plant watering services for Lola Inc.'s office buildings. Jennifer's received 4 months' service fees in advance on signing the contract.

   Required:

   1. Prepare Jennifer's journal entry to record the cash receipt for the first 4 months.

   Nov. 1	Cash
   	Accounts Payable
   	(Record receipt of payment for services not yet performed)

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   1. Revenues are recognizes when earned. We talked about this in Chapter 5.

   2. Prepare Jennifer's adjusting entry at December 31, 2019.

   Dec. 31	Accounts Payable
   	Unearned Sales Revenue
   	(Record recognition of revenue)

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   2. Revenue is not recorded until earned.

   3. Conceptual Connection: How would the advance payment [account(s) and amount(s)] be reported in Jennifer's December 31, 2019, balance sheet?

   Unearned sales revenue in the amount of $ would appear among Jennifer's current liabilities .

   How would the advance payment [account(s) and amount(s)] be reported in Lola's December 31, 2019, balance sheet?

   A prepaid asset in the amount of $ would appear among Lola's current assets .

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