You add $5,000 to the salaries expense account and to the salaries payable account in an adjusting journal entry. Deferred, or unearned, revenue occurs when you receive cash up front for services ...

When a company receives an advance payment, it must record it as a liability on the balance sheet under deferred revenue. This entry stays on the balance sheet until the business fulfills its ...

Deferred revenue liabilities must be carefully considered in conjunction with taxable asset sales, contributions to capital, and classification elections.

Deferred revenue is recorded when payment is received before services are delivered. It helps companies show a more accurate financial state under GAAP rules. Growing deferred revenue typically ...

Unearned revenue is also referred to as deferred revenue and advance payments. Unearned revenue is recorded on a company’s balance sheet as a liability because it represents a debt owed to the ...