Sun Group is engaged for M&A work by Company A. As part of the contract, Company A pays $20,000 as retainer fee. Sun received the $20,000 retainer fee on January 5, 2021. For hours worked by the consultant, the client is charged $150/hour. At the end of January 2021, the hours worked on the project were 20 hours.

Prepare journal entries for the following transactions:

a). Retainer fee received on 1/5/21

b). Prepare the journal entries for hours worked on the project on 1/31/21.

c). What would your journal entry be for b) above if you were told to apply the Retainer Fee against the hours worked by the consultant?

Answer rating: 100% (QA)

a Journal Entry for Retainer Fee Received on 1521 Debit Cash 20000 Credit Retainer ... View the full answer