Mike Conway is a lawyer who requires that his clients pay him in advance of legal services
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Question:
Mike Conway is a lawyer who requires that his clients pay him in advance of legal services rendered. Mike routinely credits Service Revenue when his clients pay him in advance. In June Mike collected 20,000 in advance fees and completed 75% of the work related to these fees. What adjusting entry is required by Mike's firm at the end of June?
Service Revenue | 5`000 |
Unearned Service Revenue | 5`000 |
Unearned Service Revenue | 5`000 |
Service Revenue | 5`000 |
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If 15`000 USD of work as done, and 5`000 USD of work is left, that's a liability so the liability should increase, so unearned service revenue should be debited? help. thank you.
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