Revenue is recognized. Cash is received. May. Cash is paid at the end of the quarter. Interest payable is a liability account. Revenue is recognized after cash is received.
Cash is received.
Revenue is recognized at the end of May and June. Revenue is recognized when Company A provides service. In this example, service is provided when time passes. Debit Credit Cash 3,000 Unearned rent revenue 3,000 Unearned rent revenue is a liability account. Expense is recognized at the end of May, June and July.