Unearned Revenue


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Related to Unearned Revenue: Accrued Revenue, Deferred revenue

Unearned Revenue

Revenue for a company from a project that has not been completed or a product that has not been delivered. A common example of unearned revenue is prepayment for a lease or asset. Unearned revenue is a liability for the company until the project has been completed or the product delivered; at that point, it becomes earned revenue.
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The company will record the entries shown in Exhibit 6 to reverse the entries shown in Exhibit 1, which initially record unearned revenue.
Lost and found: revenue recognition standard offers advice on booking liabilities and breakage income for unredeemed gift cards
Thus, when directly converting expenses, prepaid expenses have the same effect on expenses as unearned revenues have on revenues because both represent prepayments (deferrals).
Using the basic accounting equation to help students understand differences between the cash basis and accrual basis
Thus, the retailer would use an unearned revenue account to record the liability associated with gift cards when they are sold.
Accounting for retailer-issued gift cards: revenue recognition and financial statement disclosures
The net investment in the lease implicitly includes initial direct costs in the minimum lease payment component plus initial direct costs, less unearned revenue.
Accounting treatment of initial direct costs in direct financing leases
If a firm receives cash in exchange for a promised future delivery of products or services, it records the increase in cash (an asset account) and the increase in unearned revenue (a liability account).
Accounting for retailer-issued gift cards: revenue recognition and financial statement disclosures
An excellent example of an unearned revenue is interest payable on a note receivable.
Year end accounting
05 in gains related to channel returns estimates and unearned revenue for a net $0.
Microsoft Finishes Fiscal Year With Q4 Earnings Up 62%

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