How do i entere deffered income for services not rendered

mjscrow

I have received income for services that will be performed in the next year. I know the deferred revenue is considered as a liability. Once the services are performed the income will become earned income. How do I enter the deferred the income and then move it to sales?

Tom Young

Create a Liability Account - you can call it "Deferred Revenue" - and make this new Account the offset to the bank deposit.  Then, when you actually perform the service, make an entry in the Deferred Revenue Account, decreasing it, and use as the offset to that entry whatever revenue Category you typically use.

Tom Young

Create a Liability Account - you can call it "Deferred Revenue" - and make this new Account the offset to the bank deposit.  Then, when you actually perform the service, make an entry in the Deferred Revenue Account, decreasing it, and use as the offset to that entry whatever revenue Category you typically use.