On December 13, 2009, Michael Company received $8,000 in cash as a payment in advance from a customer and credited Unearned Service Revenue. The balance in the Unearned Service Revenue account was $2,000 at the beginning of December. At the end of December, all but $500 had been earned. What adjusting entry is necessary at the end of December?

Question

On December 13, 2009, Michael Company received $8,000 in cash as a payment in advance from a customer and credited Unearned Service Revenue. The balance in the Unearned Service Revenue account was $2,000 at the beginning of December. At the end of December, all but $500 had been earned. What adjusting entry is necessary at the end of December? On December 13, 2009, Michael Company received $8,000 in cash as a payment in advance from a customer and credited Unearned Service Revenue. The balance in the Unearned Service Revenue account was $2,000 at the beginning of December. At the end of December, all but $500 had been earned. What adjusting entry is necessary at the end of December?

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The Answer of On December 13, 2009, Michael Company received $8,000 in cash as a payment in advance from a customer and credited Unearned Service Revenue. The balance in the Unearned Service Revenue account was $2,000 at the beginning of December. At the end of December, all but $500 had been earned. What adjusting entry is necessary at the end of December?

On December 13, 2009, Michael Company Received $8,000 in Cash