The company will record the entries shown in Exhibit 6 to reverse the entries shown in Exhibit 1, which initially record
unearned revenue.
Thus, when directly converting expenses, prepaid expenses have the same effect on expenses as
unearned revenues have on revenues because both represent prepayments (deferrals).
Thus, the retailer would use an
unearned revenue account to record the liability associated with gift cards when they are sold.
An excellent example of an
unearned revenue is interest payable on a note receivable.
D) General unallocated expense includes foreign currency transaction gains (losses), interest income, dividend income, and profit related to
unearned revenue.
Unearned revenue increased by $690,926 to $6,031,782 during the three month period compared with a decrease of $(36,622) to $4,863,352 during the same period a year ago.
Unearned revenue increased by $128,613 to $5,340,856 during the three month period compared with an increase of $472,944 to $4,899,974 during the same period a year ago.
Unearned revenue decreased by $36,622 to $4,863,352 during the three month period.
Unearned revenue increased by $472,944 to $4,899,974 during the three month period compared with an increase of $398,059 to $3,355,970 during the same period a year ago.
VMware has also presented in this press release quarterly and annual historical data for revenue and
unearned revenue, excluding revenue generated each period by the products and services contributed to Pivotal Software, Inc.
Unearned revenue increased by $539,978 to $4,427,030 during the quarter compared with an increase of $1,284,428 to $3,087,472 during the same period a year ago.
Unearned revenue at June 30, 2010 comprised mainly
unearned revenue from volume licensing programs.
