CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 10-2 Unearned and Accrued Revenue

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON Debit the revenue account. 2.Credit the liability account. ADJUSTING ENTRY FOR UNEARNED REVENUE INITIALLY RECORDED AS A REVENUE 1 2 page 297

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON Debit the liability account. 2.Credit the revenue account. REVERSING ENTRY FOR UNEARNED REVENUE INITIALLY RECORDED AS A REVENUE 1 2 page 298

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 10-2 Principal Interest Rate Fraction of Year = Accrued Interest Income ×× Note $ % =$4.17 ×× 12 $ % = 2.92 ×× 13 1.Calculate interest earned on the notes. 2.Record entry to accrue interest income. ADJUSTING ENTRY FOR ACCRUED INTEREST INCOME page Total accrued interest income, December $7.09

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 10-2 REVERSING ENTRY FOR ACCRUED INTEREST INCOME page 300

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 10-2 TERMS REVIEW unearned revenue accrued revenue page 302