EX 3-11 Adjusting entries for unearned and accrued fees

The balance in the unearned fees account, before adjustment at the end of the year,
is $96,000. Of these fees, $78,500 have been earned. In addition, $23,600 of fees have
been earned but have not been billed. Journalize the adjusting entries (a) to adjust the
unearned fees account and (b) to record the accrued fees.

Answer:
a. Unearned Fees............................................................... 78,500
                      Fees Earned.............................................................. 78,500
                                Unearned fees earned during year.


b. Accounts Receivable .................................................... 23,600
                    Fees Earned.............................................................. 23,600
                                Accrued fees earned.