The balance in the unearned fees account, before adjustment at the end of the year, is $97,770. Of these fees, $39,750

The balance in the unearned fees account, before adjustment at the end of the year, is $97,770. Of these fees, $39,750 have been earned. In addition, $24,650 of fees have been earned but have not been billed. Journalize the adjusting entries (a) to adjust the unearned fees account and (b) to record the accrued fees.

Answers:

a. Unearned Fees39,750

Fees Earned39,750

Unearned fees earned during year.

b. Accounts Receivable24,650

Fees Earned24,650

Accrued fees earned.