Unearned Revenue Debit Or Credit Normal Balance

Either a debit or a credit balance.

Unearned revenue debit or credit normal balance. A credit balance or d. Debit cash or ar asset account credit unearned revenue liability it is a liability until the. Accounts with balances that are the opposite of the normal balance are called contra accounts. Let s illustrate revenue accounts by assuming your company performed a service and was immediately paid the full amount of 50 for the service.

Unearned revenue is originally entered in the books as a debit to the cash account and a credit to the unearned revenue account. Unearned revenue is a liability account. Hence contra revenue accounts will have debit balances. It is revenue that is received in one fiscal period despite the fact that revenue is not earned until another fiscal period.

A business pays weekly salaries of 20 000 on friday for a five day week ending on that day. After the closing entries are posted to the ledger each revenue account will have a zero balance. When you record unearned fees or revenue it only hits the balance sheet. Accounting principles of accounting volume 1 indicate whether each account that follows has a normal debit or credit balance.

Contra asset normal balance. Its normal balance is credit. Also each transaction is always recorded in two accounts. The credit and debit are the same amount as is standard in double entry bookkeeping.

The normal balance of the owner s capital account is a credit. The unearned revenue account is usually classified as a current liability on the balance sheet. A debit balance c. The account type and normal balance of unearned revenue would be a.

Which of the following accounts would likely be included in a deferral adjusting entry. The normal balance of unearned revenues is a credit. The normal balance of an expense account is a credit. A zero balance b.

Legal fees earned f. The normal balance of accounts receivable is a debit.