An advance payment for the first two months


July 31: The balance of the unearned revenue account relates to the contract between PS Music and WHBD, described in the July 3, 2012 transaction, which included the following: "On behalf of PS Music, Pat signed a contract with a local radio station, WHBD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600." In accordance with the contract, Pat received $7,200 from WHBD as an advance payment for the first two months.

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Accounting Basics: An advance payment for the first two months
Reference No:- TGS0712715

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