The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. $$\begin{array} { | c | c | c | }
\hline \text { Unearned Revenue } & 7,500 & \
\hline \text { Fees Earned } & & 7,500 \
\hline ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? & & \
\hline
\end{array}$$
A) Record payment of fees earned.
B) Record fees earned at the end of the month.
C) Record fees that have not been earned at the end of the month.
D) Record payment of fees to be earned.

Question

The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. $$\begin{array} { | c | c | c | } 
\hline \text { Unearned Revenue } & 7,500 & \
\hline \text { Fees Earned } & & 7,500 \
\hline ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? & & \
\hline
\end{array}$$
A) Record payment of fees earned.
B) Record fees earned at the end of the month.
C) Record fees that have not been earned at the end of the month.
D) Record payment of fees to be earned.

Quizplus · Accepted Answer

The entry transfers $7,500 from Unearned Revenue to Fees Earned, indicating that the revenue was previously received but is now earned.

The Following Adjusting Journal Entry Does Not Include an Explanation