Unearned Revenues
Illustrative Entries
| XX-XX-X9 |
Cash |
1,200 |
||
| Unearned Revenue |
1,200 |
|||
| Sold a one-year software license for $1,200 |
| XX-XX-X9 |
Unearned Revenue |
900 |
||
| Revenue |
900 |
|||
| Year-end adjusting entry to reflect "earned" portion of software license (9 months at $100 per month) |