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.
The net investment in the lease implicitly includes initial direct costs in the minimum lease payment component plus initial direct costs, less
unearned revenue.
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).
An excellent example of an
unearned revenue is interest payable on a note receivable.
General unallocated (expense) income includes foreign currency transaction gains (losses), interest income, dividend income, the profit related to
unearned revenue, and the impact of LIFO accounting as discussed in note (I).
05 in gains related to channel returns estimates and
unearned revenue for a net $0.
D) General unallocated expense includes foreign currency transaction gains (losses), interest income, dividend income, and profit related to
unearned revenue.
The investigation focuses on whether certain individuals violated federal securities laws by, among other things, failing to disclose that: (1) the Company's ability to produce the plant product tonnage was inconsistent with the tonnage the Company had reported to the SEC and investors as shipments of sales in its financial results; (2) by including
unearned revenue the Company's reported financial statements were grossly inflated; and (3) the rate of growth of the Company's business was inconsistent with what it had reported.
Unearned revenue increased by $1,263,773 to $6,476,016 during the twelve month period, an increase of 24.
Two hurricanes in September resulted in schedule vagaries that raised the
unearned revenue adjustment by $813,000 and shifted that revenue and profit into the fourth quarter.
