Answers:
a. Unearned Fees39,750
Fees Earned39,750
Unearned fees earned during year.
b. Accounts Receivable24,650
Fees Earned24,650
Accrued fees earned.
EX 3-16 Adjusting entries for unearned and accrued fees
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.
