Original entry:

The company sold (5) payroll service packages, covering 6 months of fully automated payroll service for $6,000 each. The regular price was $6,500 each, but the customers received a discount for paying for the service up front. Each company will receive 2 payroll runs per month. One on the 15th and one on the 30th of each month.

The company provided $5,600 of tax consulting services to clients on account

Adjusting journal entry:

As of Oct 31, employees have not been paid for 3 days of work, totaling $320. The amounts will be paid on Nov 11.

The company provided tax preparation services during the month of Oct in the amount of $1,050 that was not billed and collected until Nov