Question: On May 1, 2004 Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2005. The Cash receipt was recorded as unearned fees and at December 31, 2004, $500 of the fees had been earned.
Part 1. Record original entry on may 1. What is the balance in the liability account?
Part 2. Record adjusting entry on December 31,2004 for Giltus. What is the balance after adjustment in the liability account?
Part 3. Redo Part 1 assuming revenue method for recording all recieved in advance was used on May. What is the balance in the revenue account at December 31,2004?