Internet Connection Revenue & Receivable Journal Entry

What Does Internet Connection Revenue / Accrued Internet Connection Revenue Mean In Accounting?

Internet Connection Revenue is a Revenue received by the internet service providing company from clients against the internet connection facilities provided to them for the accounting period. It is recorded in Income Statement or Statement of Comprehensive Income.

For internet service providing company, the internet connection revenue is created as it provides internet services to clients and received a fees.

Following journal entry is recorded when we received it from clients for cash / bank:

                                                                 Cash a/c / Bank a/c  XXX 

 

                                                                                                Internet Connection Revenue a/c XXX

 

                                                            (Internet Connection Revenue Earned for the Period)

 

Accrued Internet Connection Revenue Journal Entry

When Internet Connection Revenue is earned by internet service providing company by providing internet facilities to clients for the period but still the payment (such as amount of fees) is not received, then it is a Current Asset for the internet service providing company’s business and considered as an Income Receivable from clients. It is shown on the balance sheet.

The following adjusting entry is recorded as shown below:

                               Accrued Internet Connection Revenue a/c  XXX

  

                                                                                                       Internet Connection Revenue a/c  XXX

 

                                               (Accrued Internet Connection Recorded for the Period)

 

Accrued Internet Connection Revenue is also called Internet Connection Revenue Receivable.