On March 1, a designer received a check for $7,500 from a customer for services to be provided after the customer chooses a color scheme for the first floor of her house. On July 31, the designer completed the design work for this customer. Required:
Journalize the entries.

Date                   Account Title                                          Debit               Credit

March 1             Cash                                                      $7,500

                          Unearned Revenue                                                       $7,500

Date                   Account Title                                          Debit               Credit

July 31                Unearned Revenue                              $7,500

                           Design Services Revenue                                          $7,500

In March the revenue had not been earned as the work had not been carried out so the revenue will be sent to the Unearned revenue account.

When the designer finishes in July, they can now recognize the revenue so it will be moved from the Unearned revenue account to the proper revenue account.

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