What effect will this adjustment have on the accounting records? $$\begin{array} { | c | r | r | }
\hline \text { Unearned Fees } & 6,375 & \
\hline \text { Fees Earned } & & 6,375 \
\hline
\end{array}$$
A) increase net income
B) increase revenues reported for the period
C) decrease liabilities
D) All of these choices

Question

What effect will this adjustment have on the accounting records? $$\begin{array} { | c | r | r | } 
\hline \text { Unearned Fees } & 6,375 & \
\hline \text { Fees Earned } & & 6,375 \
\hline
\end{array}$$
A) increase net income
B) increase revenues reported for the period
C) decrease liabilities
D) All of these choices

Quizplus · Accepted Answer

This adjustment moves the amount from Unearned Fees (a liability account) to Fees Earned (a revenue account), which increases revenues for the period, decreases liabilities, and as a result, increases net income.

What Effect Will This Adjustment Have on the Accounting Records Unearned Fees 6,375 Fees Earned 6,375\begin{array} { | c | r | r | } \hline \text { Unearned Fees } & 6,375 & \\\hline \text { Fees Earned } & & 6,375 \\\hline\end{array} Unearned Fees Fees Earned ​6,375​6,375​​

What Effect Will This Adjustment Have on the Accounting Records $\begin{array} { | c | r | r | } \hline \text { Unearned Fees } & 6,375 & \\\hline \text { Fees Earned } & & 6,375 \\\hline\end{array}$