Question
The Unearned Consulting Revenue account has a balance of $261,220 as of December 31, 2015. On May 1 , 2015 a client paid CMC $153,000
The Unearned Consulting Revenue account has a balance of $261,220 as of December 31, 2015. On May 1, 2015 a client paid CMC $153,000 cash in advance for a 12-month consulting services contract. CMC will earn revenue evenly over this 12-month period. This was the only prepayment received from clients during the entire 2015 fiscal year and recorded with a credit to Unearned Revenue. Of the beginningbalance in Unearned Revenue (i.e. at Jan 1 2015), 65% of the work has now been completed by year end.
What is the Adjusting Journal Entry for this? the 65% is somehow confusing me.
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