1. ADJUSTING ENTRY FOR UNEARNED REVENUE INITIALLY RECORDED AS A REVENUE1
1. Debit the revenue account. 2
2. Credit the liability account.
Lesson 10-2, page 283

2. REVERSING ENTRY FOR UNEARNED REVENUE INITIALLY RECORDED AS A REVENUE1
1. Debit the liability account. 2
2. Credit the revenue account.
Lesson 10-2, page 284

3. ADJUSTING ENTRY FOR ACCRUED INTEREST INCOME
1. Calculate interest earned on the notes.
2. Record entry to accrue interest income.
Note Principal  Interest Rate  Fraction of Year = Accrued Interest Income
12 $  10%  30/360 = $4.17
13 $  10%  15/360 = 2.92
Total accrued interest income, December $7.09 1 2
Lesson 10-2, page 285

4. TERMS REVIEW
unearned revenue
accrued revenue
Lesson 10-2, page 287