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Thompson Company Has Employed A Bookkeeper Who Is Inexperienced On December 26 A

Thompson Company has employed a bookkeeper who is inexperienced. On December 26, after reviewing the records for the year, you discover the following error.

On September 1, Thompson Company received $510 for services to be performed in the future. The bookkeeper recorded this by debiting Cash for $150 and crediting Service Revenue for $150.

Note:¬†Assume that it is the company’s policy to record the receipt of revenue in advance of earning it in the Unearned Revenue account.

Required:

Make a correcting entry on December 26. Make sure to enter the day for each separate transaction.

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