Accounting Question (how to do adjustment)?

Question

Sept. 27 Signed a contract with the City of Madison to perform services. Madison will pay Bates when all services are completed, early in 2009. No entry required at this time.

Now, it's end of month and I need to make adjusting entry that reads this...

By year-end, performed $25,000 of services, for city of Madison.

What would the adjusting entry be?

Answer 1

Dr  Accounts receivable $25,000

Cr  Services revenue $25,000

(being value of services performed)