The balance in the unearned fees account, before adjustment at the end of the year, is $272,500. Journalize the adjusting entry (include an explanation) required if the amount of unearned fees at the end of the year is $189,750.
Answer:
Dec. 31 Unearned Fees 82,750
Fees Earned 82,750
Fees earned ($272,500 – $189,750).