Accounting - Please Help
posted by Anonymous .
What would the Journal Entry be for this transaction:
Notified by Alex's Engineering Co that Success's bid of $9,000 on a proposed project has been accepted. Alex's paid a $2,500 cash advance to Sucess Systems.
Would I have two different journal entries for this? The one being:
Unearned Revenue 2500
But what about the $9000 one that I have yet to earn but will end up getting in the next year
The first one looks correct.
You don't need to make any other journal entries until work is completed and payment due, or unless a payment is received in advance.