The balance in the unearned fees account, before adjustment at the end of the year, is $95,505. Of these fees, $83,195 have been earned. In addition, $33,780 of fees have been earned but have not been billed.

Journalize the December 31 adjusting entries (a) to adjust the unearned fees account and (b) to record the accrued fees. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTSGeneral Ledger

ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 15 Land 16 Equipment 17 Accumulated Depreciation-Equipment

LIABILITIES 21 Accounts Payable 22 Unearned Fees 23 Salaries Payable 24 Taxes Payable

EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends

REVENUE 41Fees Earned

EXPENSES 51 Advertising Expense 52 Insurance Expense 53 Rent Expense 54 Salary Expense 55 Supplies Expense 56 Utilities Expense 57 Depreciation Expense 59 Miscellaneous Expense

(a) Journalize the December 31 adjusting entry to adjust the unearned fees account. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION DEBIT CREDIT ASSETS LIABILITIES EQUITY

1_________ Adjusting Entries ________ ________ _______ 2 ________ ________ _______ ___________

3 ________ ___________ ________ ___________

(b) Journalize the December 31 adjusting entry to record the accrued fees. Refer to the Chart of Accounts for exact wording of account titles.

1_________ Adjusting Entries ________ ________ _______ 2 ________ ________ _______ ___________

3 ________ ___________ ________ ___________