Difference between revisions of "Deferred Income"
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Deferred Income is money received for services which has not yet been earned. (Example: a new year registration is open, and one receives payment for the new year. We will record it as deferred income until the new year begins.) | Deferred Income is money received for services which has not yet been earned. (Example: a new year registration is open, and one receives payment for the new year. We will record it as deferred income until the new year begins.) | ||
| − | On 6/30/xx of each year | + | On 6/30/xx of each year do a journal entry to record deferred income. And then do another journal entry on 7/1/xx of each year transferring the income from a liability to revenue recognition. |
'''Link''': [https://www.youtube.com/watch?v=S0A9Y-K3DJA QB Journal Entry Video] | '''Link''': [https://www.youtube.com/watch?v=S0A9Y-K3DJA QB Journal Entry Video] | ||
Revision as of 00:41, 9 March 2023
Deferred Income is money received for services which has not yet been earned. (Example: a new year registration is open, and one receives payment for the new year. We will record it as deferred income until the new year begins.)
On 6/30/xx of each year do a journal entry to record deferred income. And then do another journal entry on 7/1/xx of each year transferring the income from a liability to revenue recognition.
Link: QB Journal Entry Video
