The unearned advertising revenues collected in advance during the year total $482,800, and the unearned advertising revenue at the end of the year is $112,500.
a. Record the following transactions directly in T accounts for Unearned Advertising Revenue and Advertising Revenue, using the system of initially recording advertising fees as a liability:
(1) Revenues received during the period;
(2) Adjusting entry at the end of the period. Identify each entry by number.
b. Record the following transactions directly in T accounts for Unearned Advertising Revenue and Advertising Revenue, using the system of initially recording advertising fees as revenue:
(1) Revenues received during the period;
(2) Adjusting entry at the end of the period. Identify each entry by number.